Ask Terry Questions Order to draw retirement funds

Order to draw retirement funds

By Terry Savage on February 15, 2024 | Financial Planning / Retirement

I’m reading on retirement funds,
That you should first take small chunks from your IRA or 401K taxable accounts and then to later draw your Roth IRA account monies. The thought is to pay taxes on monies now as taxes should go up in later years. Also the Roth IRA will continue to grow while not withdrawing from it. Then once the all taxable accounts are eliminated you can draw your ROTH IRA and have no tax liability. Would you agree with this method and if not what would you suggest?

Terry Says

I don’t know what you were reading, but that is not necessarily the answer. Your specific answer depends on many factors involved in your other income, your needs, your tax bracket, etc. This requires individualized planning from a fee-only fiduciary who can go through this entire process with you. Find one you can trust at

PS Don’t start with the assumption that tax rates will be higher in the future.

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