Retirement Tax Planning: Minimize Taxes on Withdrawals

The order in which you withdraw from traditional, Roth, and taxable accounts during retirement can save or cost you hundreds of thousands of dollars in lifetime taxes. Our Roth IRA conversion calculator helps you model conversion ladders that shift money from tax-deferred to tax-free accounts during low-income years.

Required minimum distributions starting at age 73 can push retirees into higher tax brackets and increase Medicare premiums through IRMAA surcharges. Strategic Roth conversions before RMDs begin can reduce future forced distributions and keep your income in lower brackets throughout retirement.

Tax-efficient withdrawal sequencing generally means spending taxable accounts first, then tax-deferred, then Roth, but the optimal strategy depends on your specific situation. Use our 401k calculator to project your retirement balance, and our Social Security calculator to determine the best claiming age based on your tax plan.