GLOSSARY · RETIREMENT WITHDRAWALS & EARLY ACCESS

Withdrawal order

The order in which you draw from taxable, tax-deferred and Roth accounts in retirement. The order changes how much tax you pay over the whole retirement, and in early retirement it also sets the income that ACA premium credits are based on.

Also called: tax-efficient withdrawal, which account to draw first

COMPUTE IT WITH YOUR NUMBERS

Tax-efficient withdrawal order →Which accounts to draw from first to minimise lifetime tax?

LEARN IT PROPERLY

CHAPTER · RETIREMENT PLANNING FUNDAMENTALS · FOUNDATIONSTurning Savings into Income CHAPTER · RETIREMENT INCOME & IMPLEMENTATION · STRATEGIESRoth Conversions: When Paying Tax Early Pays Off

SOURCES

Publication 590-B. Internal Revenue Service.

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