The Motley Fool Discussion Boards

Previous Page

Retirement Discussions / Retire Early CampFIRE

URL:  http://boards.fool.com/taxable-vs-tax-deferred-withdrawal-11981446.aspx

Subject:  taxable vs tax deferred withdrawal Date:  2/14/2000  12:48 AM
Author:  backslash Number:  3864 of 753904

Chips said: I've lived off the taxable account, leaving the IRA untouched, and both have grown. This has worked out fine, except that I'm facing enormous income tax bills after age 70 when I have to take IRA withdrawals. (For this reason, I need to budget my living expenses and my income taxes separately, so I don't get squeezed later.)

I didn't want to throw the previous thread off topic, so I'll start a new one for this. I've seen a little about this in here before, but I'm curious about it. Like Chips, I'll have fairly similar amounts in both taxable and tax deferred accounts when I retire. From what I've seen, it sounds like a better plan to withdraw from the tax deferred account first, to avoid the situation Chips describes. Is this accurate? Any other opinions?

Harley
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us