The article reviews how retirees can decide which accounts to draw from first to manage taxes and long-term retirement income.
STATE COLLEGE, Pa., Sept. 24, 2026 /PRNewswire/ — Which retirement accounts should be used first when generating income during retirement? HelloNation answers this question in an article that explores retirement income planning strategies for individuals with multiple investment accounts.
The HelloNation article features insights from Financial Advisor Ash Toumayants of Strong Tower Associates. The article explains that retirement income planning involves carefully sequencing withdrawals from different account types, including taxable accounts, IRAs, 401(k)s, and Roth accounts, in order to manage taxes and extend retirement savings.
A key starting point in retirement income planning is estimating annual spending. The article explains that retirees should calculate how much income is needed each year to cover essential expenses, discretionary spending, and unexpected costs. Once this baseline is established, retirees can determine how much to take in withdrawals from various accounts while maintaining a sustainable long-term plan.
Taxable accounts are often the first source considered when planning withdrawals. The article notes that investments in taxable accounts have already been subject to taxation, making them a practical option for early withdrawals. Using taxable accounts first can allow tax-deferred retirement vehicles such as IRAs and 401(k)s to continue growing for a longer period.
Traditional IRAs and 401(k)s also play an important role in retirement income planning. Withdrawals from IRAs and 401(k)s are typically taxed as ordinary income, which means the timing and size of withdrawals can affect a retiree’s tax bracket. The article explains that retirees in Pennsylvania often evaluate projected income from pensions, Social Security, and other sources before determining how much to withdraw from IRAs or 401(k)s each year.
Roth accounts are often used later in retirement strategies. The article notes that Roth accounts offer tax-free withdrawals for qualified distributions, which provides flexibility when managing taxes. Because Roth accounts allow tax-free withdrawals, retirees may preserve them for later years when additional income is needed or when tax rates may be higher.
Social Security benefits also influence withdrawal decisions. The article explains that coordinating Social Security with withdrawals from taxable accounts, IRAs, and 401(k)s can help manage taxable income and maintain a balanced retirement income strategy. Evaluating different claiming ages for Social Security alongside withdrawal strategies can help retirees optimize long-term financial outcomes.
Modeling different withdrawal scenarios is another helpful approach. The article explains that financial software, spreadsheets, or professional retirement income planning tools can illustrate how withdrawals from taxable accounts, IRAs, 401(k)s, and Roth accounts affect long-term savings and tax exposure. Comparing several scenarios helps retirees understand how different strategies may influence retirement income over time.
Personal circumstances also play an important role in withdrawal planning. The article notes that factors such as longevity expectations, health care expenses, travel plans, and lifestyle goals should be considered when deciding how to sequence withdrawals. Retirees in Pennsylvania may adjust withdrawal strategies depending on whether they prioritize preserving tax-advantaged accounts or meeting near-term spending needs.
The article concludes that retirement income planning requires balancing withdrawals across taxable accounts, IRAs, 401(k)s, and Roth accounts while coordinating Social Security benefits and managing taxes. Evaluating multiple withdrawal strategies allows retirees to design a plan that supports steady retirement income and long-term financial security.
Retirement Income Planning: How to Decide What to Withdraw First features insights from Ash Toumayants, Financial Advisor of State College, PA, in HelloNation.
About HelloNation
HelloNation is America’s Good News Network, a premier media platform built on the idea that good news travels faster when real people tell real stories. Through its community-focused publications and innovative “edvertising” approach, HelloNation delivers content that informs, inspires, and spotlights the leaders making a meaningful impact in their communities.
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