Retirement Withdrawal Guide-Retirement Fund Strategy Guide

Example

For a retiree with a mix of taxable, tax-deferred, and Roth accounts, the Guide would typically advise withdrawing from taxable accounts first, then tax-deferred accounts like traditional 401(k)s and IRAs, and Roth accounts last. This sequence can help minimize the retiree's lifetime tax burden and preserve tax-free benefits for longer.

Scenario

A retiree looking to start withdrawals has multiple accounts and wants to know the most tax-efficient withdrawal strategy.

Example

The Guide analyzes different withdrawal strategies to show how each impacts the user's tax liabilities. For instance, it might highlight the benefits of Roth conversions in low-income years to spread out tax liabilities.

Scenario

An individual nearing retirement wishes to understand the tax implications of withdrawing from their retirement accounts at different times or in different orders.

Example

It provides advice on managing Required Minimum Distributions from tax-deferred accounts like traditional IRAs and 401(k)s, offering strategies to mitigate their impact on taxes.

Scenario

A retiree over age 72 has not yet started withdrawals and seeks advice on managing RMDs to avoid hefty tax penalties.

Example

The Guide offers insights into the timing of Social Security benefits claims, showing how different claiming ages affect lifetime benefits.

Scenario

Someone approaching retirement age is trying to decide the optimal time to start claiming Social Security benefits to maximize their income.