Taxable account, IRA, or Roth—where should retirement withdrawals come from first? Joseph Hardeman and Deanne Rosso explain why there isn’t one perfect order for everyone, and how a tax-smart approach can help keep income steady and avoid unwanted tax surprises.Want a personalized withdrawal strategy? Visit elevate-wealth.com and click Let’s Talk.🔗 Website: https://elevate-wealth.com🔗 Facebook: / elevatewealthadvisory 🔗 Instagram: / elevatewealthadvisory Subscribe to our channel and hit that notification bell 🔔 to stay updated on the latest investment strategies and financial planning tips!#RetirementIncome #TaxPlanning #RothIRA #Investing #ElevateWealthAdvisory

When you retire, which account should you pull from first, taxable, IRA, or Roth? We're talking about it today on Elevate Wealth. Hi everyone, I'm Joseph Hardeman with Elevate Wealth Advisory, and I'm here today with our president and CEO, Deanne Rosso. Deanne, thank you for joining us. I'm happy to be here, Joseph. This question comes up constantly. Deanne, do you assume there's one right account for people to spend first in retirement? You know, people do assume that, they do. They think that there's one right account that they shouldn't withdraw from first. And you know, most retirees have different types of accounts. And the type of account that you pull from affects lots of things. It affects your taxes now. It affects your Required Minimum Distributions later. So there's lots of different decision points, if you will, that go into which type of account you should pull from first. So what's the simple answer? The simple answer is: it depends. like, as is the answer to every simple question. It depends. But we often use a blended approach. And what I mean by that is maybe the way that we're taking withdrawals is from different types of accounts simultaneously. And a lot of times, we do that just simply for tax purposes. You know, one account you take from is fully taxable. Another account type, like a Roth, may not be taxable at all. And then you have an account that only part of it, like capital gains, are taxed. So, a lot of times that the simple answer is not so simple, but it's just deciding which types of those accounts work together to get you the best tax outcome. And what would you say is a common mistake people make when they try to do this on their own? Oh, that's a really great question. You know, I think it's just not understanding what the taxation is of certain account types. So, for example, I've had clients before that wanted to buy a new car. So, they took a sizable withdrawal out of their IRA to buy a car in cash and not understanding that those dollars were fully taxable at ordinary income rates. So, not only did they owe tax on the withdrawal, but it also because they had taken such a large withdrawal, it pushed them into a higher tax bracket the next year. So, or or that year. And so I think that sometimes that's a mistake that people make is just not realizing the tax consequences of withdrawals. So when you're going into building a plan, what would you say is the first thing you really look for? Well, the first thing I'm looking for is, you know, what income do they need? What income do you need to live on? And then what income do you need maybe for the extras like in that example for buying a car? And then we're going to decide, okay, you know, here are your income sources. Here's what you have available to you. Here's how each of those are taxed. And how can we put those together in a way that's most efficient for you and your personal situation? It's all helpful information, something really everyone should consider. If you want help building your best tax withdrawal plan, visit us at elevate-wealth.com and click let's talk. We'll see you next time.