A New Rule of Thumb For Tapping Savings

Bucking the conventional wisdom, tapping a traditional IRA early in retirement could pay unexpected dividends.

EDITOR'S NOTE: This article was originally published in the September 2012 issue of Kiplinger's Retirement Report. To subscribe, click here.

When it comes to tapping your retirement savings, a basic rule of thumb calls for withdrawing from taxable accounts first and allowing tax-deferred traditional IRAs and tax-free Roth IRAs to grow as long as you can. But a mounting body of research shows that you may be better off switching the order a bit.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%
https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription


Why am I seeing this? Find out more here

Susan B. Garland
Contributing Editor, Kiplinger's Retirement Report
Susan Garland is the former editor of Kiplinger's Retirement Report, a personal finance publication whose subscribers are retirees and those approaching retirement. Before joining Kiplinger in 2006, Garland was a freelance writer whose work appeared in the New York Times, the Washington Post, BusinessWeek, Modern Maturity (now AARP The Magazine), Fortune Small Business and other publications. For 12 years, Garland was a Washington-based correspondent for BusinessWeek, covering the White House, national politics, social policy and legal affairs. Garland is a graduate of Colgate University.