Stop Following the “Standard Withdrawal Order.” Start Managing Your Tax Brackets.

Pulling money in retirement isn’t about following a “standard order”—it’s about tax bracket management.

Most retirees blindly follow the old rule:
1. Taxable Brokerage
2. Pre-Tax IRA/401(k)
3. Roth

The problem? Draining one account at a time can force you into a massive tax trap later in life.

When Mandatory RMDs hit, large Pre-Tax balances can suddenly trigger:
💥 Higher ordinary tax brackets
💥 Up to 85% of Social Security becoming taxable
💥 Steep Medicare IRMAA surcharges

A Better Blueprint: Tax-Bracket Matching
Instead of draining accounts sequentially, blend your withdrawals dynamically:

Fill Low Brackets Early: Pull (or convert) Pre-Tax dollars in early retirement to fill lower tax brackets before mandatory RMDs hit.

Use Capital Gains for Mid-Tier Spending: Tap taxable brokerage accounts to capture favorable 0% or 15% long-term capital gains rates.

Use Roth as the “Tax Buffer”: Pull from Roth for high-expense years (travel, large purchases) to keep reported taxable income flat.

The Goal: Pay taxes intentionally at lower rates today so the IRS doesn’t dictate your tax rates tomorrow.

Please contact the local agent of TransGlobal today or call 888-831-8868.

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This article is for informational purposes only and should not be construed as financial advice or legal advice. Please consult with a professional to develop a strategy that is right for you. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. TransGlobal Advisory, LLC (TGA) does not provide legal, tax, or accounting advice. You should consult your personal tax or legal advisor before making any financial decisions.