Retirement Withdrawal Strategies: Taxable, Traditional, and Roth Accounts (2026)
Retirement planning does not end when you stop saving. You also need a plan for how to withdraw money from different accounts over time. Many retirees hold money in three different account types: taxable brokerage accounts, tax-deferred retirement accounts such as Traditional IRAs and Traditional 401(k)s, and Roth accounts. Each account can affect income taxes, capital gains, Medicare premiums, Social Security taxation, and future required minimum distributions. Important Note There is no single retirement withdrawal order that is best for every household. The right approach depends on your age, tax filing status, account balances, spending needs, Social Security, health insurance, Medicare, estate goals, and state taxes. 1. Understand the Three Main Retirement Income Buckets Before deciding which account to use first, identify how each account is taxed. Account Type Examples General Tax Treatment When Money Is Withdrawn ...