There is no single retirement withdrawal order. Learn how retirees think through taxable, tax-deferred and Roth accounts, and what shapes the answer.
There is no single withdrawal order that works for everyone. The right sequence for retirement accounts generally depends on your taxes, required distributions, Social Security timing, and what you want to leave behind. Most people weigh these together, and the answer may change from year to year.
That is why "which account do I spend first?" is one of the most common questions we hear, and one of the least suited to a rule of thumb. This guide explains the three kinds of accounts in plain words, the common starting point and its limits, and the questions worth bringing to a planning conversation.
The three kinds of accounts, in plain words
Most retirees hold money in some mix of three kinds of accounts. What separates them is when the tax bill arrives.
- Taxable accounts: Bank accounts, brokerage accounts and similar savings you have already paid income tax on. Interest, dividends and any gains you realize are generally taxed in the year they occur.
- Tax-deferred accounts: Traditional IRAs and workplace plans such as a traditional 401(k) or 403(b). You generally have not paid income tax on this money yet, so withdrawals are typically taxed as ordinary income. These accounts are also generally the ones subject to required distributions.
- Roth accounts: Roth IRAs and designated Roth accounts in a workplace plan. You paid tax on the money going in, and qualified withdrawals are generally tax-free, according to the IRS (as of November 2, 2026).
If you are weighing how traditional and Roth accounts differ, our guide to Traditional vs. Roth IRAs walks through them in more detail.
The common starting point, and why it is only a starting point
You will often hear a simple sequence: spend taxable accounts first, then tax-deferred accounts, then Roth accounts last. The idea is that leaving tax-deferred and Roth money invested longer may give it more time to grow, and that Roth accounts may be the most flexible to leave for later or for heirs.
It is a reasonable place to begin a conversation. It is not a plan, because several things can pull against it:
- Large tax-deferred balances. If most of your savings sit in tax-deferred accounts, waiting until required distributions begin may leave you with sizable taxable withdrawals later, whether you need the money or not.
- Uneven income across years. Some retirees have a few lower-income years, for example after they stop working and before Social Security or required distributions begin. Drawing from different accounts in those years may change the taxes you pay over time. Other households have no such window.
- Taxable accounts that carry gains. Selling can create taxable gains, so what a taxable account costs you to spend depends on what is inside it.
- Spending that is not level. A new roof, a health event or a year of travel can call for money from whichever account is most practical that year.
- Changing rules. Tax law can change, and a sequence that looked sensible once may need a fresh look.
Every one of these is a trade-off, and results vary from one household to the next. Taking money from an account earlier than you must may raise your taxes sooner, while waiting may raise them later.
How required distributions and Social Security change the picture
Two pieces of the retirement income puzzle tend to move the order more than people expect.
Required distributions. Once you reach the applicable age, the IRS generally requires you to begin withdrawing a minimum amount each year from tax-deferred accounts. Roth IRAs generally do not require withdrawals from the original owner. The start age depends on your birth year, so confirm yours on the IRS website. Because those withdrawals are generally taxed as ordinary income, the size of your tax-deferred accounts may shape your income in later years. It is worth thinking about before the first one is due. Our Retirement income and RMDs service page explains how we approach this.
Social Security. Depending on your total income, part of your Social Security benefits may be included in taxable income, according to the IRS (as of November 2, 2026). That means the accounts you draw from, and when, can affect how much of your benefit is taxed. In the other direction, the age you start Social Security may change how much you need from your accounts in the meantime. We cover that decision in our guide on when to take Social Security.
Your legacy goals belong in the conversation
Withdrawal order is not only about your own taxes. The accounts you spend first are the accounts you do not leave behind, and different account types may be taxed differently for the people who inherit them. If leaving something to children, grandchildren or a charity matters to you, that can reasonably change which accounts you lean on and when. Estate documents and beneficiary designations need to line up with the plan, which is one reason we bring estate planning inside the same conversation.
Questions to bring to a planning meeting
You do not need to have answers. Bringing the questions is enough to start. These are the ones we find worth working through:
- Which accounts do you own, and roughly how is your money divided among taxable, tax-deferred and Roth?
- How much income do you need each year, and how much of that is fixed versus flexible?
- What other income is coming: Social Security, a pension, part-time work, rental income?
- When might you start Social Security, and does your spouse's situation change that?
- Will required distributions produce more income than you need?
- Are there years when your income may be unusually low or unusually high?
- What would you like to leave behind, and to whom?
- Who is on your team already, such as a tax professional or an attorney?
Frequently asked questions
What is the usual order of withdrawal in retirement?
A commonly cited starting point is taxable accounts first, then tax-deferred accounts, then Roth accounts. It is a general starting point only. Depending on your situation, your taxes, required distributions, Social Security timing and legacy goals may point to a different sequence, and the best approach may change over time.
Should I always spend my Roth account last?
Not necessarily. Many people keep Roth money for later because qualified withdrawals are generally tax-free and the account generally has no required distributions for the original owner. But some households draw from a Roth in certain years for tax or cash-flow reasons. Whether that makes sense depends on your whole picture.
Do required minimum distributions change the order?
They can. Required distributions from tax-deferred accounts generally begin at an age set by your birth year, and the amounts are generally taxed as ordinary income. Because they may push you to take money from those accounts whether or not you need it, they are often part of deciding what to draw on earlier.
Does the order I withdraw affect how much of my Social Security is taxed?
It can. Depending on your total income, part of your benefits may be taxable. Withdrawals from tax-deferred accounts generally add to that income, while qualified Roth withdrawals generally do not. A tax professional can show you how this plays out for your own return.
Are there special 401(k) withdrawal rules I should know about?
Yes. Workplace plans have their own terms, including when you can take money out and how required distributions work, and those can differ from IRA rules. Check your plan's documents and talk with a qualified tax professional before you act. A traditional 401(k) generally follows the tax-deferred rules above, while a designated Roth 401(k) follows the Roth rules, with some differences from a Roth IRA.
Can I decide my withdrawal order on my own?
You can, and many people do. A planning conversation may help you see the trade-offs across taxes, income, Social Security and legacy together, rather than one account at a time.
Talk it through with us
Every household's accounts are different, and so is the right way to think about them. If you would like to look at yours together, bring your statements to a first meeting. Contact our team to start the conversation, or read more about our Retirement income and RMDs service.
Sources
IRS pages below were reviewed as of November 2, 2026. This article is educational and is not tax or legal advice. We do not provide tax or legal advice, so please consult a qualified tax professional about your situation. It does not recommend a specific withdrawal order for any person, and rules can change.
