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Investing Specialists

When to Break the Rules on Sequencing Retirement Withdrawals

Tax diversification is a valuable goal at all stages of retirement.


It's a sequence tax-savvy retirees and pre-retirees have no doubt heard time and again: In order to limit the drag of taxes on their retirement assets, they should first meet living expenses by taking their required minimum distributions, then move on to taxable assets, followed by traditional IRAs and 401(k)s. Roth assets, whether IRA or 401(k), go last in the queue.

Christine Benz does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.