Use this printable cheat sheet to decide which account to draw from first in retirement—and when to deviate. It pairs a simple baseline with practical exceptions for tax brackets, IRMAA, RMDs, and Roth conversions.
Educational only—not tax or legal advice.
Use this printable cheat sheet to decide which account to draw from first in retirement—and when to deviate. It pairs a simple baseline with practical exceptions for tax brackets, IRMAA, RMDs, and Roth conversions.
Educational only—not tax or legal advice.
Instant download + email copy
The default order: taxable → tax-deferred → tax-free (Roth), and why it works for most retirees.
When to deviate: bracket-fillers, Roth conversions, RMD years, and capital gains timing.
How withdrawals affect Medicare surcharges (2-year lookback) and when to size conversions carefully.
Order for capital gains vs. dividends, and specific-lot strategies to control taxes.
A one-page visual you can keep by your desk to guide withdrawal decisions.
This is the default order—but exceptions often apply.
Spend down cash, interest, and tax-efficiently harvest gains as needed. Refill cash with dividends if aligned to your plan (or reinvest and sell lots intentionally).
Account types: Brokerage, savings, CDs
Traditional IRA, 401(k), 403(b) withdrawals are ordinary income. Pace them to fit your tax plan and RMD timeline.
Account types: Traditional IRA, 401(k), 403(b)
Keep Roth dollars for later years, longevity, or heirs—unless an exception fits. Qualified withdrawals are completely tax-free.
Account types: Roth IRA, Roth 401(k)
Take enough tax-deferred income to fully use your current bracket. Don't leave "free" tax space on the table.
Convert Traditional → Roth in years with lower income, staying inside chosen tax/IRMAA guardrails.
Realize gains in 0%/lower capital-gains years; avoid stacking gains that bump brackets unexpectedly.
Model how withdrawals/conversions affect Medicare brackets (2-year lookback).
RMDs must be taken regardless of baseline. Coordinate so they fund your cash-flow target.
In down markets, fund cash needs from bonds/taxable instead of selling equities at lows.
Spend cash & interest first → then consider qualified dividends → then LT capital gains (use specific-lot sales to control taxes).
Keep lots with large embedded gains for later years or charitable gifting strategies.
Note: We coordinate charitable strategies with your attorney/CPA; legal/tax work is separate.
Download the printable one-page decision flow to keep by your desk.
Download the Cheat SheetNo. It's a starting point. Bracket-filling, Roth conversions, RMD timing, and IRMAA planning often justify deviations. We model options and document the "why" so your withdrawal strategy is coordinated with your overall tax plan.
Not necessarily. Conversions help when today's tax cost likely beats tomorrow's—and when IRMAA/tax bracket impacts are acceptable. We size conversions to guardrails based on your specific situation, income sources, and time horizon.
Use dividends to support cash needs if tax-efficient; otherwise reinvest and sell the most favorable lots when you actually need cash. Qualified dividends are taxed at preferential rates, so timing matters less than with ordinary income.
Use your planned cash buffer and conservative assets to cover near-term withdrawals, then rebalance when markets stabilize. Avoid panic-selling long-term holdings at depressed prices—this is exactly why we build cash reserves into retirement income plans.
Once RMDs start, you must take them regardless of your preferred withdrawal order. Smart planning means using RMDs as part of your cash-flow—not in addition to it—and potentially doing Roth conversions before RMDs begin to reduce future required distributions.
Our cheat sheet is a starting point. For personalized modeling of withdrawal sequences, Roth conversion opportunities, and tax bracket optimization, schedule a 20-minute introductory call.
Or call us directly: (480) 597-1743
Instant download + email copy