﻿ Withdrawal Strategies That <br>Break the Rules-Kiplinger
Withdrawal Strategies That Break the Rules   As a rule of thumb,
retirees should withdraw assets from taxable accounts first,
tax-deferred accounts such as traditional IRAs next, and tax-
free accounts such as Roth IRAs last. Typically, you spend your
after-tax money first because you want your retirement assets to
compound tax-free for as long as possible.  But rules are made
to be broken. There may be times when tapping your tax-
advantaged accounts first will help your money last longer, says
William Reichenstein, a professor of investment at Baylor
University, in Waco, Tex.   One category of rule breaker may be
retirees who are younger than 70 1/2 and not yet subject to
taking required minimum distributions from their IRAs, says
Reichenstein. These retirees may be in a low tax bracket for
several years until it’s time to take RMDs.  Consider a retiree
who is in his mid sixties. He has taxable accounts with bonds,
stocks and certificates of deposit