Strategies For Stretching Out Tax Savings In Retirement Years

When a person is planning on retirement they will need to decide on which retirement accounts they will take withdrawals from and in what order. There is no single right answer for the proper withdrawal sequence because the best retirement strategy will often depend on a person’s age and tax rate along with other individual circumstance. It is a good idea to old onto the plans with the most generous tax treatment while spending down retirement assets that are less tax efficient. Creating a good strategy for withdrawing assets from retirement accounts will require careful research and planning. People who are planning for retirement should meet with an experienced estate planning professional who can help devise a good strategy that is suited to the client’s individual financial situation.

See Christine Benz, Get a Tax-Smart Plan for In-Retirement Withdrawals, Morningstar, February 26, 2016.