Your retirement accounts
Account balances at retirement
Traditional 401k / IRA $800,000
Roth IRA $200,000
Taxable brokerage $100,000
Retirement details
Annual spend $60,000
Retire at age 62
SS income / month $2,000
SS starts at age 67
Tax settings
State income tax 5%
Filing status
Your optimal strategy
Mix 401k withdrawals with Roth to minimise taxes
Lifetime tax saved
$0
vs conventional order
Total lifetime tax
$0
avg effective rate
Roth preserved
$0
tax-free at age 90
Year-by-year withdrawal plan
Show all years
| Age | From 401k | From Roth | From Taxable | Tax | Eff Rate | Strategy |
|---|
Why drain 401k before Roth?
Your 401k grows tax-deferred but is fully taxed on withdrawal. Your Roth grows AND withdraws tax-free. The longer Roth compounds, the more valuable it becomes — especially for heirs.
The 12% bracket sweet spot
For most retirees, staying in the 12% federal bracket is optimal. Pull 401k up to that limit each year, then use Roth for the rest. You pay the lowest rate on the most dollars.
Roth conversions before SS
The years between early retirement and SS starting are a golden window — your income is low. Converting 401k to Roth in these years locks in lower tax rates permanently.
RMD trap at age 73
The IRS forces you to withdraw from your 401k starting at age 73 (RMDs). A large 401k can push you into higher brackets. Drawing down 401k earlier — strategically — prevents this.