Order of withdrawal

[Jay G]

For the time when I retire, I’m thinking about the order of withdrawal from the set of:

– taxable investment account
– sep ira
– 401(k)
– roth ira

I had originally thought it would be best to hit the taxable account first. But I understand that if I leave money in a taxable investment account to my child, then they get a steep-up in cost basis and will be able to get all of the growth in that account tax-free. So now, I’m thinking that I should work out a strategy for converting the sep ira to roth in the first years I’m not working (more on that in another post), and maybe save the taxable account for the future.

Thoughts?

• This topic was modified 1 month, 1 week ago by jayginbk.

[Author]

Posts