Published April 2026

The Best Withdrawal Order for Your Retirement Accounts

One of the most common questions in retirement planning is: "Which account do I tap first?" While it seems simple, the order in which you withdraw funds from your Brokerage, Traditional IRA/401(k), and Roth accounts can have a massive impact on your long-term wealth.

The Conventional Wisdom

For years, the "standard" advice was a rigid three-step process:

1. Taxable Brokerage Accounts: Spend this first to let your tax-advantaged accounts grow as long as possible.
2. Tax-Deferred Accounts (Traditional): Spend this next.
3. Tax-Free Accounts (Roth): Save these for last to maximize tax-free growth.

Why the Conventional Wisdom is Often Wrong

The problem with "saving Roth for last" is that it often ignores Tax Bracket Management. If you only spend brokerage money for 10 years, your Traditional IRA grows untouched, eventually creating a "tax bomb" when Required Minimum Distributions (RMDs) kick in, potentially pushing you into a much higher tax bracket than necessary.

A Better Approach: Proportional or Guided Withdrawals

A more efficient strategy involves filling up your lower tax brackets (like the 10% or 12% brackets) every single year. This might mean taking some money from your Traditional IRA even while you still have brokerage funds available, effectively "smoothing out" your tax liability over decades.

The Three Account Types Explained

1. Taxable Brokerage

These accounts are funded with after-tax dollars. You only pay taxes on the gains (capital gains) when you sell. If your income is low enough, you might even qualify for the 0% long-term capital gains rate.

2. Traditional (Tax-Deferred)

You got a tax break when you put the money in, but every dollar that comes out is taxed as ordinary income. This is the "heavy lifter" of retirement accounts but requires the most careful management.

3. Roth (Tax-Free)

The "Gold Standard". You paid taxes upfront, and now the growth and withdrawals are 100% tax-free. These are incredibly flexible because they don't count toward your taxable income.

Conclusion

There is no one-size-fits-all answer, which is exactly why I built the calculator. By running your specific numbers through different scenarios, you can see exactly how many years of portfolio life you might gain by simply switching the order of your withdrawals.