Reported about 1 month ago
Conventional wisdom suggests that retirees should delay withdrawing from tax-deferred accounts like 401(k)s or IRAs, but Morningstar's Mark Miller advocates for a different approach. He suggests that retirees could benefit from withdrawing from these accounts first to minimize overall tax liability, particularly to reduce the tax impact on Social Security benefits. By using tax-deferred funds for living expenses or converting to a Roth IRA before claiming Social Security, individuals may lower their taxable income and maximize benefits, challenging traditional strategies for retirement withdrawals.
Source: YAHOO