I’ll have several sources of retirement income. Where should I withdraw the money from first?
Some of your retirement accounts may have minimum distribution requirements – usually starting at age 70 ½ – and that can influence where you withdraw the money from first. But there are other factors too, like investment performance and tax implications. Here’s a common liquidation order:
- Taxable accounts
- Tax-exempt / municipal accounts
- Roth IRAs
- Tax-deferred accounts
While this is a common order to take the money, talk to your tax advisor before you make your final decision because your specific situation will dictate what you should do.