Withdrawal Strategies

In retirement, you shift from a paycheck that is taxed automatically, to drawing from retirement accounts to supplement social security and any pensions. These withdrawals are taxed in various ways depending on source. In addition, drawing too much additional taxable income can change how your social security is taxed. Evaluating the most efficient source of funds over the years can have a large impact on how long your funds last, or how much you pass on to your heirs.

Utilizing accounts with different tax treatment allows you to better control the amount of income you report each year. Balancing income sources with an eye towards your specific tax situation can help minimize your taxes. Different techniques make sense in a low-income year vs. a high-income year. Here again, we can work with you and your tax advisor to dial in the most efficient approach dynamically on an ongoing basis.