How to Choose Which Retirement Accounts to Tap First
Financial advisor Ash Toumayants outlines strategies for drawing retirement income in the right order to manage taxes and preserve long-term savings.
Deciding which retirement accounts to draw from first can significantly affect how much retirees owe in taxes and how long their savings last, according to financial advisor Ash Toumayants of State College, Pa., featured in a recent HelloNation article.
Toumayants breaks down the core challenge retirees face: different account types — such as traditional IRAs, Roth IRAs, and taxable brokerage accounts — carry different tax treatments, meaning the sequence of withdrawals can either erode or protect a nest egg over time.
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Sequencing withdrawals strategically allows retirees to manage their taxable income year by year, potentially keeping them in lower tax brackets and reducing exposure to taxes on Social Security benefits or Medicare surcharges. The approach requires ongoing attention rather than a set-it-and-forget-it mindset.
While the source does not specify a single universal withdrawal order, the underlying guidance underscores that personalized planning — accounting for account balances, expected expenses, and tax situations — is essential for retirees looking to maximize income longevity.
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