The Short Answer

Get a Tax-Smart Plan for In-Retirement Withdrawals

Christine Benz

Question: I'm preparing for retirement and trying to figure out where I should go for money to meet my income needs. I understand that it's important to start by withdrawing from some accounts and save other accounts for later. What's the right sequence?

Answer: There isn't a cookie-cutter answer to withdrawal sequencing because an investor's strategy will be determined by age and tax rate when taking the withdrawal. But a key focus when developing your withdrawal strategy should be preserving the tax-saving benefits of your tax-sheltered investments for as long as you possibly can.