This would seem to make the most sense. If we build up these accounts as a 3 legged stool, why not withdraw from them in a similar way. Preserving the pros/cons of each account and likely flexibility across later decadesMay I suggest that you re-think this. Why not try to keep your tax bill level over the long haul by withdrawing from a mix of account types? Your current plan will use up taxable first, which will have lower taxes owed on long term capital gains and dividends. When taxable is gone, then every dollar withdrawn from tax-deferred will be fully taxed as ordinary income (like your wages were). Then your remaining years will be tax-free (as long as the Roths outlive you).Once I hit 65, or for tax purposes starting next year, I will follow the traditional order of retirement spending with taxable first, followed by tax deferred and then finally Roth. However, I have found utilizing my Roth as well as HSA accounts has been extremely worthwhile in maximizing my ACA supplement.
You will also be paying taxes on capital gains in taxable that can be avoided since the taxable shares remaining at death can get a free step-up in cost basis. Why pay taxes on that?
Statistics: Posted by Wannaretireearly — Mon Jan 19, 2026 10:40 am — Replies 57 — Views 3414