Tax Tuesday:
A smart withdrawal plan can help your retirement dollars last longer and reduce your lifetime tax burden. A common strategy is to withdraw from taxable accounts first, allowing tax-deferred assets to continue compounding. Next, draw from tax-deferred accounts like Traditional IRAs and 401(k)s—keeping an eye on RMDs and your annual tax bracket. Finally, tap tax-free Roth assets last, preserving their unique benefit: fully tax-free growth and withdrawals. Coordinating your withdrawal order with market conditions, income needs, and tax brackets can add meaningful efficiency to your long-term plan.
