Which Accounts Should You Withdraw From First in Retirement?

There is no single retirement withdrawal order that fits everyone. Start with the cash you need and any required distributions, then compare which mix of taxable, traditional IRA and Roth IRA withdrawals fits your tax situation and retirement plan. Different strategies can suit different households; the familiar “taxable first, Roth last” sequence is only one approach. (Fidelity)

You may have spent years choosing investments and building your savings. Retirement adds a different question: which account should send money to your checking account?

Here is a practical way to organize that decision without treating an account label as a complete plan.

What should a retirement withdrawal plan consider?

Begin with your spending, not your account balances. Estimate what you need for regular bills, taxes and larger expenses, then subtract income you expect from sources such as Social Security or a pension.

The remaining gap is what your investments need to cover. Keep those figures together when you review our four-step retirement-income planning guide.

Next, list where the money could come from:

Moving cash already held in a brokerage account is different from selling investments to raise that cash; for an investment sale, the gain or loss is measured against adjusted basis. (IRS)

Why not always spend taxable accounts first?

Using taxable savings first can be a reasonable approach. But it is not the only one: comparing a mix of withdrawals across account types may help you manage how taxable income changes during retirement. (Fidelity)

For example, a lower-income year may be a time to compare a traditional IRA withdrawal with using only brokerage cash. In another year, a large taxable gain or other income might make a qualified Roth withdrawal worth considering instead. These are alternatives to test, not automatic recommendations. (Fidelity)

Ask your advisor to show how each option fits the full picture. Paying the least tax this year should not be the only measure of a plan you may use for decades.

How do age and required distributions change the decision?

If you are younger than 59½, check access rules before choosing an account or moving money. Early taxable retirement-account distributions can face an additional 10% tax unless an exception applies. (IRS)

One exception can apply to a qualifying employer plan when you leave that employer during or after the calendar year you turn 55. That separation-from-service exception does not apply to IRA withdrawals, so review it before rolling the plan into an IRA; ordinary income tax can still apply. (IRS, Schwab)

Once required minimum distributions, or RMDs, apply, build them into the year's plan before choosing extra withdrawals. An RMD cannot be converted to a Roth IRA; Roth IRAs have no RMDs during the original owner's lifetime, though inherited accounts follow different rules. (IRS)

Our RMD guide can help you identify the next questions to review. An inherited account should receive a separate rules check rather than being treated like your own IRA.

Could the choice affect Medicare or Social Security?

Yes. The taxable portion of Social Security benefits depends on the household's income and benefits, so review other income alongside proposed withdrawals. (IRS)

Higher income can also lead to additional Medicare Part B and Part D premiums, called IRMAA. Social Security generally uses tax information from two years before the premium year, so a decision this year may affect a later year's premiums. (Social Security, SSA handbook)

Do not judge a withdrawal by its income-tax effect alone. If you are also considering a conversion, our Roth conversion and IRMAA guide explains questions to include in that review.

What could the same $40,000 withdrawal look like?

Consider a hypothetical retired couple, both age 67, comparing three ways to raise $40,000 before taxes. This is an educational illustration using rules checked October 20, 2026, not an actual client, a tax-savings projection or a recommendation.

Assume their traditional IRA contains only pretax money. Their Roth IRA withdrawal meets the qualified-distribution requirements, and the brokerage shares have $30,000 of adjusted cost basis and no selling costs.

These are gross cash amounts, not equal after-tax spending amounts. The example does not calculate the couple's final tax bill, Social Security taxation or Medicare premiums, and it does not establish which choice is best.

Use the comparison to ask for a projection based on your own income, account history and spending needs. Also ask which investments would be sold and how the remaining portfolio would fit your plan.

Questions to bring to a withdrawal review

• Spending: What cash do I need after taxes, including larger planned expenses?
• Account rules: Do I have required distributions, inherited-account rules or early-withdrawal restrictions?
• Tax records: Are my brokerage cost basis and any after-tax IRA contributions documented?
• Portfolio: Which holdings would be sold, and what would I still own afterward?
• Alternatives: What changes if I use a different mix of accounts this year?

Turn your accounts into a coordinated plan

At Integrity Financial Planning, I connect personal financial planning with customized investment management. If you are approaching retirement or reviewing how to draw from your accounts, an introductory meeting is a chance to discuss your questions and whether we are a fit.

Schedule an introductory meeting with Todd.

This article is educational and is not individualized investment, tax or legal advice. Federal rules were checked October 20, 2026; state taxes and individual circumstances can change the analysis, so review implementation with your advisor and tax professional.