Sequencing Withdrawals in Early Retirement
By David Okonkwo, Senior Financial Planner, CFP®
Most retirees hold savings across several account types — taxable brokerage accounts, tax-deferred retirement accounts, and Roth accounts — each with different tax treatment. The order in which you draw from these accounts can meaningfully change how much of your savings you keep after taxes.
A common approach draws from taxable accounts first, allowing tax-deferred and Roth accounts to continue growing. But this isn't universal — for some retirees, strategic partial Roth conversions or blended withdrawals across account types in lower-income years can reduce lifetime tax exposure.
The right sequence depends on your specific tax bracket trajectory, Social Security timing, and other income sources, which is why we model withdrawal sequencing as part of every retirement plan rather than applying a single default rule.
This content is for informational purposes only and does not constitute personalized investment, tax, or legal advice. It is not a recommendation to buy or sell any security. Past performance is not indicative of future results, and all investments involve risk, including possible loss of principal. Meridian Capital Partners is a fee-only fiduciary; please see our Form ADV Part 2A for a full description of our services and fees.
David Okonkwo
Senior Financial Planner, CFP® at Meridian Capital Partners.