If this is a question you are considering, hopefully you are older than 59 and 1/2 years of age, Why? Because there is no penalty for money withdrawn from a tax-advantaged account if your older than 59.5 years. Generally, when recommending withdrawal strategies, pundits suggest spending from taxable accounts first; thereby, allowing the assets of your tax-deferred account(s) to grow for a longer period of time. However, this “one-size-fits-all” planning may not account for retirement balances of large value.

In these cases, it is best to do some advanced planning regarding cash flow form your Required Minimum Distributions (RMDs) of all of your tax-deferred retirement accounts. For example, if delaying withdrawals from your tax-deferred accounts until your RMDs must occur would place you in a significantly higher tax bracket, you may want to consider withdrawing from these accounts earlier. By planning your withdrawals in such a manner you can fully utilize the entire income range of your lower tax brackets and avoid paying the higher tax rate when your larger RMDs would have had to occur.

If these are questions you are asking yourself, then contact Intelligent Investing (www.mynmfp.com/new-clients) to help find the answers!

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