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Retirement Discussions / Retire Early CampFIRE
|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.)"
"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?
As I recall, which one to tap first depended upon a lot of individual items such as do you have enough in taxa