The order you withdraw in matters more than people think
Two retirees with identical portfolios can end up with very different outcomes, based only on which accounts they drew from first, and when. Brad Blackburn builds the withdrawal sequence before it becomes a problem.
Schedule a Confidential AuditHow I think through the order
How I sequence withdrawals, account by account.
Tax-smart sequencing
I look at taxable accounts, traditional IRAs, and Roth accounts as three separate tools, not one pool of money.
Which one I draw from first in a given year depends on your tax bracket that year, not a fixed rule that applies every year the same way.
Required minimum distributions and Medicare surcharges
Required minimum distributions currently begin at age 73 under federal law.
Withdrawals also affect Medicare premium surcharges (IRMAA), based on income from two years prior.
I plan around both of these together, since a withdrawal that looks fine on its own can trigger a surcharge you didn't see coming.
Auditor: source and date current-year IRMAA thresholdsSouth Carolina decumulation mechanics
South Carolina taxes IRA, 401(k), and pension withdrawals as regular income, but exempts Social Security entirely.
The retirement income deduction at 65 changes what's optimal to withdraw and when. I build the sequence around South Carolina's specific brackets, not a generic national assumption.
Turning a portfolio into a predictable deposit
Once you're retired, the goal is a paycheck that doesn't depend on what the market did last week. I structure withdrawals across account types so a market downturn doesn't force a sale at the wrong time, drawing from cash reserves or other sources first when that's the better option that year.
This isn't a single transaction. It's reviewed and adjusted every year, as markets, tax law, and your own needs change.
¹ Required minimum distributions currently begin at age 73, rising to age 75 for individuals who attain age 74 after Dec. 31, 2032 (with a clarifying exception for individuals born in 1959, who use age 73 per final IRS regulations resolving an ambiguity in the original statutory language). Source: SECURE 2.0 Act of 2022, §107; IRS final regulations, 89 Fed. Reg. 58886.
² Medicare IRMAA surcharges are determined using income reported two years prior. Source: Social Security Administration / Centers for Medicare & Medicaid Services.
³ South Carolina taxes IRA, 401(k), and pension withdrawals as regular income, but exempts Social Security entirely. Source: S.C. Code of Laws §12-6-1170; SC Department of Revenue, SC1040 Instructions, 2025 tax year.