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Retirement tax questions
While we aren’t able to provide financial planning advice, the conventional wisdom is to take money out of taxable retirement accounts first, such as a traditional IRA, then any tax deferred accounts, and finally a Roth IRA. As you know, distributions from your Roth IRA will generally be tax-free, while distributions from your traditional IRA constitute taxable income.
Some of the considerations for deciding which account to draw from is your projection of your future tax bracket, and contemplating allowing your Roth IRA more of an opportunity to grow over time. Having said that, this is the kind of question best posed to a financial planner or wealth management advisor.
I hope this necessarily general response is helpful!
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June 26, 2024
10:01 AM