Market Moment Podcast · Mach 1 Financial Group

What's the Best Order to Withdraw From in Retirement? (IRA, Roth, 401Ks, and More)

·28 min·2 clips

John explains why you don't have to empty your IRA at age 73 to avoid a massive tax problem.

Matt and John, advisors from Mach1 Financial Group, host this episode of the Market Moment Podcast. They address a listener's question about the optimal sequence for withdrawing from different retirement accounts. The core discussion focuses on navigating the tax implications of withdrawals from taxable accounts, traditional IRAs, and Roth accounts. A common default strategy is to withdraw from taxable accounts first, then traditional IRAs, and Roth accounts last to preserve their tax-free growth. The hosts explain this is because Roth funds are considered the most tax-efficient wealth-building vehicle for long-term and legacy planning. They note a key misconception is that Required Minimum Distributions (RMDs) at age 73 or 75 require withdrawing an entire IRA balance, when in reality, the initial withdrawal is only a small percentage. For individuals with most savings in a 401(k), it may be wise to draw from IRAs earlier to manage future RMDs and tax brackets. A surprising consideration is using Roth withdrawals strategically to avoid triggering higher Medicare premiums under IRMAA. The hosts emphasize that asset location—diversifying across taxable, tax-deferred, and tax-free accounts—is as crucial as asset allocation for retirement flexibility. They advise younger savers to build all three "buckets" to handle unknown future tax laws. Charitable giving via Qualified Charitable Distributions (QCDs) from IRAs can also significantly alter withdrawal strategies for those who are philanthropically inclined. The conversation then shifts to current market conditions, highlighting UPS's strong earnings beat and 7.6% stock jump as a positive signal for the broader economy beyond tech. They note cooling housing costs and a 10-year Treasury yield under 4% as additional encouraging signs. However, they balance this with observations of ongoing corporate layoffs, citing UPS's plan to cut 48,000 jobs as part of a leaner operation. The hosts debate AI's long-term impact, noting only 16% of S&P 500 companies currently use it, and whether it will ultimately destroy or create new jobs. The tone is conversational and educational, blending straightforward financial advice with casual banter between the two co-hosts. The style is advisory, offering general principles while stressing the need for personalized planning. Listeners nearing retirement or those beginning to save who want to understand tax-efficient withdrawal strategies would find this episode highly relevant. Individuals seeking purely market news or speculative investment tips might find the first half less applicable to their immediate interests.

As heard by us

A clear reminder that retirement planning comes down to taxes, timing, and flexibility.

The episode keeps retirement withdrawal timing grounded in practical choices: where money sits, when taxes land, and how much room is left to adjust later.

Read the full review in PlayNext →

Why you'd press play

You want a clear plan for IRA withdrawals before required distributions start.

Read the full recommendation in PlayNext →

Listen to the show on

Apple Podcasts Spotify

Play clips from this episode More from Market Moment Podcast