Why not withdraw from Roth accounts first?

Roth money grows tax-free with no required distributions during the original owner's lifetime, under current law. Spending it early gives up the one account type that benefits the most from being left alone the longest.

Learn · Withdrawal Order

Taxable, Then Tax-Deferred, Then Roth. Here's the Exception.

Q: Does everyone need to follow the same withdrawal order?

No. The standard order is a reasonable default, not a rule. Your actual tax bracket each year, pension or Social Security income, and whether you're managing toward an ACA subsidy or IRMAA threshold can all justify a different order.

The order you tap your accounts in retirement changes how much you keep. There's a default that works for most years, and one window where breaking it on purpose is smarter.

By Retire BFF Editorial Team Updated October 2026

The Default Order

Taxable brokerage accounts — already-taxed money, often with favorable capital gains rates
Tax-deferred accounts — traditional 401(k), traditional IRA; taxed as ordinary income when withdrawn
Roth accounts — already taxed going in, grows and comes out tax-free

The exception: in the years after you retire but before required minimum distributions start, usually your lowest-income years of retirement, it's often worth breaking this order on purpose. Pulling extra from tax-deferred accounts, or converting some of it to Roth, fills up your low tax brackets now instead of letting RMDs force bigger, higher-taxed withdrawals later.

Why This Order Exists

Each account type has a different relationship with the IRS, and the order protects the accounts that benefit most from being left alone.

Spend taxable money first and you're not giving anything up. It's already been taxed. Spend tax-deferred money next and you convert it to ordinary income at whatever your bracket is that year. Spend Roth money last, because under current law it has no required distributions for the original owner and grows tax-free for as long as you let it sit. Burn through Roth money early and you've traded the one account that rewards patience the most for the one that needed the least help.

Here's a case that makes it concrete.

Maria, 63, retired two years ago with $42,000 in a taxable brokerage account, $583,000 in a traditional IRA, and $150,000 in a Roth IRA. She needs about $55,000 a year before Social Security starts at 67. Following the default order, she spends the $42,000 taxable account down over roughly the first year and a half, paying capital gains rates on whatever portion is growth. Once it's gone, she shifts to the traditional IRA, paying ordinary income tax on each withdrawal. The Roth IRA doesn't get touched until the other two are exhausted, which for Maria might be well into her 80s.

What Each Account Is Actually For

Account type	Why it's tapped in this position	What it's not ideal for
Taxable	Already taxed; spending it costs nothing extra	Holding long-term if you have no other income need
Tax-deferred	Taxed as ordinary income; better to realize that in lower-bracket years	A high-income year, or a year you're also managing an ACA subsidy
Roth	Tax-free growth, no RMDs under current law	Spending early, before tax-deferred money is used up

The Window Where Breaking the Order Pays Off

Required minimum distributions force withdrawals from tax-deferred accounts starting at a fixed age set by current law. Before that age hits, especially right after you retire and before Social Security starts, your taxable income can be unusually low. That gap is valuable, and it doesn't last.

Quick Fact A married couple with no other income can often realize a meaningful amount of ordinary income in the lowest tax brackets before owing much in federal tax, because of the standard deduction plus the width of those brackets. The exact thresholds change every year with inflation adjustments, so check the current figures before planning around them.

Two moves work in this window. The first is simply withdrawing more from the traditional IRA than you need to spend, paying tax on it now at a low rate, and parking the rest in a taxable account. The second is converting that amount to a Roth IRA instead of withdrawing it as cash, which is the mechanic behind a Roth conversion ladder. Either way, you're choosing to pay tax at today's low rate instead of a potentially higher rate once RMDs force the issue.

The real exception isn't "ignore the order." It's "use the order, but pull the window forward on purpose while the bracket is cheap."

Watch Out Realizing extra income in these years can also affect ACA premium subsidies if you're not yet on Medicare. More on that trade-off in the bridge to 65 guide.

Withdrawal Order FAQ

What is the standard retirement withdrawal order?

Taxable brokerage accounts first, then tax-deferred accounts like a traditional 401(k) or IRA, then Roth accounts last. The idea is to let your tax-advantaged money keep growing tax-deferred or tax-free for as long as possible.

What's the exception?

The years after you retire but before required minimum distributions start are often your lowest-income years. Pulling some money from tax-deferred accounts on purpose during this window, or converting it to Roth, fills up low tax brackets before RMDs force larger withdrawals later at a higher rate.

Why not spend the Roth account first? It's already tax-free.

That's exactly why it should be last. Roth money has no required distributions for the original owner under current law and grows tax-free indefinitely. Spending it early gives up the account that benefits the most from sitting untouched.

Does everyone need to follow the same order?

No. It's a reasonable default, not a rule. Your actual tax bracket, pension or Social Security income, and whether you're managing toward an ACA subsidy or IRMAA threshold can all justify something different.

Educational purposes only. This guide describes general account mechanics and is not personalized financial or tax advice. Tax brackets, RMD ages, and related thresholds are set by current law and change; verify current figures at irs.gov before acting. Retire BFF is not a registered investment advisor. Consider consulting a qualified tax or financial professional before changing your withdrawal strategy.