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Once a bond/CD ladder is established and withdrawals have begun, how should a retiree go about funding the ladder each year? Where do the funds for each new bond/CD come from?

From your stock portfolio.

When you fund your retirement ladder each year do you use dividends and distributions from taxable accounts instead of reinvesting them? If so, wouldn't this manuever possible save paying extra taxes for if you reinvested and then had to sell to fund the ladder, you could possibly be paying extra capital gains tax. Seems as though it might be best to have all dividends and distributions paid out and if they are not needed to fund a new ladder, they could be reinvested in the same instruments or to establish new accounts.

Do you use funds in taxable accounts first or do you use tax deferred accounts first? It is seems as though there are pros and cons to each method. Leaving tax deferred accounts to grow as long as possible and using the funds in taxble accounts first seems wise. However, if one wants to leave funds to hiers or needs to leave funds to provide care for a disable person, it seems that it would be best to use up funds in tax deferred accounts first so that the person or persons inheriting the funds would recieve the benefit of inheriting the funds in taxable accounts at the cost basis on the date of death. Your thoughts, please!
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