Taxable first is generally best of you are going to eek by, as it preserves the tax sheltered space.
Traditional first is generally best if you are worried about large RMDs and will being leaving any remainder to your equally successful children.
For most of us, a balance between all three is probably optimal. For example, a plan that balances traditional and taxable for regular expenses and then pulls extraordinary expenses that would change the tax bracket from Roth might work for some.
Any of the above plans assume you are actually drawing down. Some folks continue to save in retirement or only make the occasional draw when they buy a new car or whatever. I know our withdrawal plan will ultimately depend somewhat on how much longer my partner works. As they say mo' money, mo' problems.
Traditional first is generally best if you are worried about large RMDs and will being leaving any remainder to your equally successful children.
For most of us, a balance between all three is probably optimal. For example, a plan that balances traditional and taxable for regular expenses and then pulls extraordinary expenses that would change the tax bracket from Roth might work for some.
Any of the above plans assume you are actually drawing down. Some folks continue to save in retirement or only make the occasional draw when they buy a new car or whatever. I know our withdrawal plan will ultimately depend somewhat on how much longer my partner works. As they say mo' money, mo' problems.
Statistics: Posted by sailaway — Fri Jun 21, 2024 7:58 pm