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Author: backslash Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 734590  
Subject: taxable vs tax deferred withdrawal Date: 2/14/2000 12:48 AM
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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
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