FoolishProf sez:<<The issue of when and how much to draw from tax-deferred is an interesting one. I believe that TMFPixie addressed it sometime back in a post. However, he sorta left me hanging with the answer. Is it better to draw earlier that age 71.5 or wait?>>All things being equal (and they never are), with the scenarios I've been playing with (about 1/3 in taxable accounts, 2/3 in traditional IRA), under the current tax structure a LRB&H investor is better off taking from the traditional IRA first, next the taxable. That lessens the total tax burden to the investor while living and the heirs after death. However, much depends on rates of return in the taxable and tax deferred accounts, the length of withdrawal period, the rate of withdrawal, inflationary increases in withdrawals, and income tax rates.IMHO we must establish the assumptions appropriate to our circumstances and run the numbers under those assumptions for a comparative analysis. There just ain't a general rule of thumb because everyone's situation is different.Regards..Pixy
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