Retirement Withdrawal Order Which Accounts to Tap First And Why It Matters

Retirement withdrawal order can matter as much as how much you saved. The conventional advice — spend taxable accounts first, then your traditional IRA, and save the Roth for last — may quietly set up a tax problem in your 70s. 👉 FREE: Download our 15 Retirement Planning Checklists — the ones we use with clients → https://www.covenantwealthadvisors.com/retirement-checklist 🗓️ Prefer to talk now? Free strategy session: https://www.covenantwealthadvisors.com/free-retirement-plan Check out our Covenant Wealth Advisors Youtube Channel → / @covenantwealthadvisors ======================= In this video, Mark Fonville, CFP® explains why research suggests a smarter withdrawal sequence can add more than three years to a portfolio's life, and walks through the bracket-filling approach his firm uses with retirees who have $1 million or more saved. 📌 Key Takeaways: • The conventional retirement withdrawal order (taxable → IRA → Roth) minimizes this year's taxes but can inflate lifetime taxes for larger IRAs. • At 73, required minimum distributions force out about 3.77% of your IRA in year one — whether you need the income or not (age 75 if born 1960 or later). • IRA withdrawals can drag up to 85 cents of Social Security per dollar into taxable income — pushing a 22% bracket toward a 40.7% effective rate in some cases. • In 2026, crossing $218,000 of income (married filing jointly) by even $1 triggers Medicare IRMAA surcharges — based on income from two years earlier. • The gap years between retirement and RMD age are a use-it-or-lose-it window to fill low tax brackets with withdrawals or partial Roth conversions. 🔗 Resources Mentioned: • 📋 FREE: Get the Roth conversion flowchart we use with clients (plus 15 retirement planning checklists) → https://www.covenantwealthadvisors.com/retirement-checklist • 2026 IRS tax inflation adjustments (Rev. Proc. 2025-32) — https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amend

Added 18 Jun 2026