What Order Should You Withdraw From Retirement Accounts?

The general rule of thumb is to withdraw from taxable brokerage accounts first, then tax-deferred accounts like a traditional 401(k) or IRA, and Roth accounts last, since this order lets tax-free Roth growth compound the longest. But required minimum distributions, tax bracket management, and Social Security timing can all justify blending the order rather than following it rigidly.

Why Taxable Accounts First?

Money in a regular brokerage account has already been taxed once, you only owe capital gains tax on growth when you sell, and often at favorable long-term rates. Spending this money first lets your tax-advantaged accounts (traditional and Roth) keep compounding untouched for as long as possible, which is generally the most tax-efficient sequence over a long retirement.

Why Tax-Deferred (Traditional) Accounts Second?

Traditional 401(k) and IRA withdrawals are taxed as ordinary income when you take them out. Drawing these down in your 60s and early 70s, often a lower-income period before Social Security and RMDs both kick in, can let you fill up lower tax brackets deliberately, sometimes even paired with strategic Roth conversions during those same years. See our Roth conversion guide for how that pairing works.

Why Roth Accounts Last?

Roth withdrawals are entirely tax-free and don’t count toward the combined income formula that determines whether your Social Security is taxable. Preserving Roth money for as long as possible means it keeps compounding tax-free, and you can pull from it strategically in high-income years (to avoid a higher bracket) or leave it for heirs, since inherited Roth accounts are also generally tax-free to beneficiaries.

Where Do RMDs Fit In?

Required minimum distributions override the simple order once you reach RMD age. The IRS requires you to withdraw a minimum amount from traditional retirement accounts each year starting at that age, whether or not you actually need the money, and this withdrawal is taxable regardless of your preferred sequencing. See our full RMDs explained guide for exact ages and calculation rules. In practice, many retirees end up taking RMDs from traditional accounts while also drawing down taxable or Roth funds to cover the rest of their spending needs.

A More Realistic Approach: Blending, Not Rigid Sequencing

Most financial planners don’t recommend draining one account type completely before touching the next. Instead, a more tax-efficient approach often blends withdrawals across account types each year, pulling just enough from traditional accounts to “fill up” a lower tax bracket, supplementing with taxable account withdrawals, and saving Roth withdrawals for years when you need extra income without pushing into a higher bracket.

• Early retirement, before Social Security and RMDs: often the best window to draw down traditional accounts at lower tax rates, or do Roth conversions.
• Years with unusually high expenses (a large purchase, medical cost): consider Roth withdrawals to avoid a bracket jump from a big traditional withdrawal.
• After RMDs begin: your traditional account withdrawals become partly mandatory, so blend remaining spending needs across taxable and Roth as needed.

How Does This Interact With Your Social Security Timing?

If you plan to delay claiming Social Security, the years before you claim are often the best window to draw down traditional accounts or do Roth conversions at a lower income level, since you haven’t added Social Security income to the mix yet. Once you’re receiving benefits, additional traditional withdrawals can push more of your Social Security into taxable territory, which is one more reason to plan withdrawal order alongside your claiming strategy rather than in isolation.

What About Employer Plan Rules?

If you have several old employer accounts, our 401(k) rollover guide covers consolidating them, which can simplify managing withdrawal order significantly compared to juggling withdrawals across many scattered old accounts with different rules and minimums.

FAQ

What is the standard retirement withdrawal order?

Taxable brokerage accounts first, then tax-deferred accounts like traditional 401(k)/IRA, then Roth accounts last, though most planners recommend blending rather than following this rigidly.

Why save Roth withdrawals for last?

Roth withdrawals are tax-free and don’t count toward the income that determines Social Security taxation, so preserving them lets that money keep growing tax-free the longest and gives you flexible, tax-free income later.

Do RMDs change the withdrawal order?

Yes. Once you reach RMD age, you must withdraw a minimum amount from traditional accounts regardless of your preferred sequence, which often means blending traditional withdrawals with other accounts rather than a strict order.

Should I do Roth conversions instead of following the standard order?

Many retirees combine both, converting some traditional money to Roth during lower-income years before Social Security and RMDs begin, while still generally spending taxable funds first.

Bottom Line

Withdrawing taxable accounts first, traditional accounts second, and Roth last is a solid starting framework, but blending withdrawals to manage your tax bracket each year, especially around RMDs and Social Security timing, usually beats following the order rigidly. Your ideal sequence depends on your specific account mix and income needs each year.

A quick note: withdrawal sequencing gets genuinely complex once RMDs, Social Security, and Roth conversions are all in play together. A fee-only financial planner or CPA can help model your specific accounts and tax situation year by year rather than relying on a one-size-fits-all rule.