Which Account Should I Pull From First in Retirement?

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Over the course of your working life you've probably accumulated retirement savings in a few different "Tax buckets" - taxable, tax-deferred, and tax-free accounts.
The order and combination in which you withdraw from these accounts can mean the difference in hundreds of thousands of dollars in taxes paid over your lifetime.
In this video, Jake breaks down the different tax buckets and shows an example of how one of our client households is projected to save over $400K in taxes (BEFORE considering Roth conversions!) throughout their retirement.
Incase you missed the link in the video, here's the video where we show the potential impact of Roth conversions: • Starting a Roth IRA Af...
0:34 Agenda
1:19 Your Desired Retirement Lifestyle (Expenses)
2:09 Your Income Floor (Guaranteed Income)
2:43 "Fill The Gap" (How much you'll need from your portfolio)
3:00 Tax Buckets
3:05 Taxable Accounts
3:57 Long-term Capital Gains
4:08 Tax-Deferred Accounts
4:52 Tax-Free Accounts
5:35 Case Study Overview
7:22 Kevin & Katie's Tax Buckets
8:00 Conventional Method vs. Taxable, Tax-Deferred, Tax-Free
9:48 Roth Conversions up to 24% Bracket
10:30 Considerations
11:27 RMDs / Social Security / IRMAA
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*This content is educational and not tax, legal, or investment advice*

[@mrbigglesworth375]

I have all three account types. I think I am a bit different in that my brokerage account is about 30% bigger than my IRA and Roth. I see alot of information to consider roth conversions, however, when I turn 60 why not just pull from the IRA? Instead just let the brokerage account continue to grow. If I do the roth conversations I'm still creating a taxable event but likely even higher as I would be pulling from the brokerage account and also incurring a taxable event moving me into a higher bracket?

[@SparkWealthAdvisors]

I like your thinking - Roth conversions do not always make sense, but they are certainly the "talk of the town". If you need to liquidate highly appreciated investments from your taxable account to cover the taxes on the Roth conversion, the juice may not be worth the squeeze. The withdrawal order is really dependent on how much income you need (and marginal tax bracket as a result), your balances in each bucket, cost basis in the taxable account, etc.
If you'd like, you can send over rough balances to [e-mail] and I can see what might make sense in your scenario. Thanks for your comment!
- Jake