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URL:  http://boards.fool.com/chips-said-quotive-lived-off-the-taxable-11986795.aspx

Subject:  Re: taxable vs tax deferred withdrawal Date:  2/15/2000  12:18 AM
Author:  jpkiljan Number:  3926 of 795211


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.)"

Harley said
"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"

As I recall, which one to tap first depended upon a lot of individual items such as do you have enough in taxa