Step-by-Step Guide to Tax-Efficient Retirement Withdrawals: Social Security, Roth IRAs & 401(k)s

[@edchang9521]

Retired almost 6 years, only wished I followed your channel earlier. Better late than never! Thanks Erin

[@johnbielawski5775]

Perfect timed video for myself, officially retiring tomorrow..

[@ErinTalksMoney]

Congrats!!!

[@mazyegillisgmail]

🎉🎉🎉👏👏👏👏👏👏🎆🎊🙏

[@SpookyEng1]

Congrats!

[@punisher6659]

Congratulations!

[@OnceACupcake]

Congratulations!!!!!🎉🎉🎉

[@abnmp7865]

I have researched most of the topics you present. A. Even the ones I thought I knew well you still give me something. B. You present this in a very easy to understand method. C. Look forward to each of your videos. Thank you and a very Happy New years to you and your loved ones.

[@kckuc310]

Simply the best video on KZbin out there on this subject! Well done!

[@ErinTalksMoney]

Thank you!!

[@markdamico2070]

Erin, you do a great job explaining this. Of course, these scenarios did not take into consideration the brokerage account earning interest, dividends and/or realized gains. These items are taxable regardless of whether anything is taken out of the brokerage account... taxability of which is not at all determined based upon what you are pulling from that account. So, just keep in mind that you have to consider these income sources (and any others) when determining how much cashflow to pull from retirement accounts and from which.

[@weareallamericans7358]

Best video I've seen for zero federal tax strategy withdrawals 🤑👍

[@Larry1-pl2wq]

With inflation still an issue, taxes might eat up more of my savings than I expected. What can retirees like me do to minimize the impact?

[@ArianaFelicia-cw7oq]

You're not alone in worrying about taxes. The brackets have shifted, and depending on your income level, you could land in a higher tax bracket without even realizing it. It’s critical to look into tax-efficient strategies like Roth conversions or optimizing withdrawals from your accounts

[@Rusev-w3c]

Great point about Roth conversions. A lot of retirees overlook tax planning as part of their investment strategy, and it costs them big time. I’m semi-retired and made this mistake early on, but working with a financial advisor helped me restructure everything. My advisor, Joseph Nick Cahill, showed me how to avoid unnecessary taxes and improve my portfolio.

[@Kattyol1]

Thanks for sharing that! I’ve been doing everything myself, but I’m starting to realize there are too many moving parts-taxes, inflation, market risks. It’s overwhelming. Do you think someone like Joseph Nick Cahill could also help with balancing short-term income needs while keeping long-term growth in mind?

[@Rusev-w3c]

Absolutely! Joseph has a lot of experience with both short-term and long-term strategies. He helped me shift some investments into tax-efficient accounts and suggested ways to lower my taxable income during retirement. Plus, his free consultation gives you a chance to see if his approach works for you before committing.

[@Colbe-lx7fb]

😢 I just found him on the web. I am impressed. I also scheduled with him too. His consulting page ranked top

[@BadPhD777]

Erin: you have the ability to make complex topics simple and add in examples that are very helpful! A saying I've heard is "finances in retirement is a part-time job. Will you do it or get help?" Do what's right for you so you minimize your taxes!

[@CC-gu3ze]

Gf is sharp as a tack and does not skip arm day! Great videos, some of the best financial advice on the platform.

[@oldaloneandfarfromhome]

This is extremely helpful. Thank you! I always get so much from your videos. I stay tuned until the end for the bloopers, as well. I would consider placing bloopers at the end of my videos, but I fear the bleeps would far outnumber the actual words that would be heard. I admire your restraint!

[@sailingslapshot]

Best video I've seen on this topic. Answered some remaining questions I've had as I near retirement. Thanks!!

[@kwilliams1958]

Your financial wizardry continues to educate me, Erin; however, I find such pleasure in your ability to entertain us with your bloopers, which to be honest, we each could film about on own daily travails. You are such a delightful and informative voice for many in your community.

[@1dash133]

I've been retired for 7 years. The first 5 years I treated my taxes basically the same as before I retired. It's only in the last 2 years that it has dawned on me how tax planning during retirement is different from working. Working: I basically reacted to my situation. I had a job, it paid me every month, I had bills, I paid them every month, I had taxes, I paid them every April. I had some control over my tax situation, enough to make me feel "I'm in control". LoL. Although I could do some minor tweaking of my taxes, most of it was a given. Tax planning was more of an afterthought, a chore that needed to be attended to once a year. Retirement: While the majority of my income remains fixed (S.S. and pension), I have a lot more control over my overall tax outlook. I have tools (Roth conversions) to manipulate. And I have control over which of my investment accounts to tap during retirement. I truly have significant control over my tax exposure. Tax planning is fundamental for my retirement financial well-being. This video by Erin is a perfect example of how to control your tax situation during retirement.

[@jerrypollo65]

I had problem comprehending trading in general. I tried watching other KZbin trading channels, but they made the concepts more complicated. I was almost giving up until when i discovered content and explain everything in detail. The videos are easy to Follow ..............

[@silver45q]

I think what you need is a financial advisor assigned by a brokerage company that will trade for you and handle's your capital professionally and give you weekly returns of investment without any extra fees attached.imagine I invested $14,500 with a WOman you recommended some time ago and got profits of $200,080✊✊✊ ... .......

[@Francisco-287]

28k a week? Amazing! how did you get started?

[@Alfred-pm9ox]

This is huge! Your advisor must be grade A. Mind sharing more info, please? I'm in dire need of proper asset allocation.

[@aliq218]

Trading on a demo account can definitely feel similar to the real market, but there are some differences. It's important to remember that trading involves risks and it's normal to face looses sometimes. One piece of advice is to start small and gradually increase your investments as you gain more experience and confidence. It might also be helpful to seek guidance from experienced traders or do some research on different trading strategies

[@silver45q]

I signed up for a 1-on-1 trading session. It's like copy trading, but with personalized guidance

[@georgebetts5567]

I love how simply and clearly you spell everything out on what most of us view as a complex subject. Ty!

[@joethecomputerguy1]

Yep. Great minds think a like. And it's funny that whenever I say I have a -0- income tax bill in retirement so many say that's not possible. I just laugh and say you keep doing you and I'll keep doing me. Knowing taxes helps minimize taxes, period. More so in retirement. Hope you're doing well and happy New Year!

[@ErinTalksMoney]

Happy New Year!!

[@wandab3843]

Thanks Erin. This is definitely what I needed to see.

[@ErinTalksMoney]

Glad it was helpful!

[@HeathAQUIST]

In the given scenarios I would recommend doing at least some small Roth conversions. We don't want to waste those low income tax years. Love the videos. Happy New Year! 🎉

[@bryanwhitton1784]

Agreed, I am retired but my wife isn't. We do ROTH conversions with as much as possible to stay within the 22% federal tax bracket. Doing everything we can to minimize RMDs. Unfortunately we won't be able to do as much as we would like but getting as close as possible is valuable too.

[@fdm2155]

I've been thinking about this lately. I'll retire several years before full eligibility for social security. Even with rental property income, those will likely be my lowest income years. I'm thinking it's a good time to move investments from my 401K to my Roth account.

[@1dash133]

@@bryanwhitton1784 Be careful about IRMAA penalties that come into play at age 63 (even though Medicare doesn't start until age 65). That's because the government uses your income TWO YEARS before the year of Medicare eligibility to assess income criteria. The IRMAA penalty brackets are extremely punitive. Cross the income bracket by a single dollar and the entire bracket penalty applies. And it applies to both you and your spouse (if you're both eligible for Medicare), i.e., the penalty effectively doubles. 😵

[@bryanwhitton1784]

@@1dash133 Yeah, my wife lost an uncle two years ago and her inheritance put us way over the IRMAA threshold, in fact well into the 2nd tier. I need to go in to the local SSI office tomorrow or Friday to file paperwork for an exemption. IRMMA sucks if you're not careful. On the other hand losing uncle Wendel was worse.

[@1wheeldrive751]

Roth conversions only make sense if your tax bracket at the time of conversion is lower than it will be later, usually because your pretax retirement savings are so large that RMDs will push your income tax rate up. However, if you know that your taxes will be lower, even with RMDs, then Roth conversions are actually detrimental. One other point is that if you do large conversions that will push you over IRMAA thresholds, but won’t be doing them anymore 2 years later, you can appeal the IRMAA, showing a reduced income (just like after retiring). The appeal can eliminate or reduce the IRMAA penalty.

[@x2bate]

This content can be found in a lot of places. But the presentation is WAAAAY better!! Goes a long way to understanding. And the bloopers? They keep me coming back. Thks

[@krisj99]

This is one of the best videos I’ve seen on this topic. Your walkthrough is easy to follow and helped me apply the process to our own situation.

[@ErinTalksMoney]

Glad it was helpful!

[@RJN82]

Thanks! Great coverage of important retirement finance topics.

[@ErinTalksMoney]

Thank you!! 🙏

[@richshaffer985]

Thank you for this great video! It is much easier to understand than the other KZbin videos on tax strategies.

[@dj-dg2wx]

Great video. The more I hear the concepts of buckets and withdrawal strategies the clearer it gets. I also see that it takes planning and thought and that you need to be flexible to pivot for things like a down market period. Thanks and Happy New Year!

[@ErinTalksMoney]

Well said! Happy New Year!!

[@TimRevels]

I love this video, thank you Erin! I've been working on this myself the past couple years trying to set up for tax efficiency now while I'm relatively younger and my mind is still relatively sharp lol. 20 years away from retirement roughly but trying to plan well ahead. Keep up the great work, I love this type of content!

[@JollyJL60]

Erin, this is a great follow-up to your 'Choose the Right Withdrawal Strategy for Retirement' video! You are absolutely right that there's no 'one-size-fits-all' withdrawal strategy because there are tons of variables and everyone has unique circumstances with their financial situations. However, you highlighted some key tax-related concerns in your simple and easy to understand examples. Thank you. Also, I totally forgot about the additional deduction for seniors 65 and older--thanks for the reminder. Happy New Year!

[@mhz9257]

My plan is to save save save and when I have more than enough keep listening to Erin and what she says is the best strategy in 10-12 years. You are the best keep up the amazing videos

[@wildfoodietours]

Erin, really love how you explain complex concepts simply to save on taxes.

[@WinstonSchnauzer]

Truly a fantastic video. Many of us already knew, but your explaining and graphics are superb. Great value.

[@mikebemis9584]

This really was beneficial, turning 70 this year with a younger wife. Looking for a way to show lower income so we can qualify for subsided health care. Your information is always appreciated, thank you Erin!

[@grahamrhodes5320]

Much, much clearer than any other explanation I have heard. Thanks Erin!

[@ErinTalksMoney]

Glad it was helpful!

[@KaiGittens]

Well done on this one!!! Keep it up!!!

[@martinyeager7948]

I think this video points out there are things each of us should consider about our specific situation if we want to reduce taxes in retirement. It is a bit complicated at first but once you work you specific situation it just needs a yearly checkup. Your examples video and its examples are helpful. Thank you, and Happy New Year.

[@ErinTalksMoney]

Happy New Year!!

[@fast22fast]

Great info, THANKS! Retiring at the end of the year and this is exactly the kind of info I'm looking for.

[@andrewlacousre]

I have watched a couple of your videos they are GREAT, informative and easy to understand. Thanks

[@chetz4d]

I've been watching your videos for a while now and this one has to be one of the best ones you've done. The examples and graphics were spot on and easily digestible. Thanks for the clarity and much needed content!!

[@ErinTalksMoney]

Wow, thank you!

[@ChrisKerr-i7s]

Great information in an easy to understand way. Loved the outtakes at the end!

[@robwiles57]

Good work and examples for a couple with $1 million. Their taxable brokerage account may produce taxable interest or non qualified dividends, so it's not as easy as the example shows. Also, once you have more than a million, it can get more tricky. Keeping your taxable brokerage account in investments paying qualified dividends and producing capital gains and having your 401{k) hold the investments producing ordinary income is prudent. The above was for other readers. I find your videos very helpful. Thank you, Erin, and best wishes.

[@brandonblahnik6002]

This was a great video to start 2025. I especially liked maxing-out the standard deduction with pretax account dollars and using other accounts for the remaining needed income. This is because a lot of people have a bunch of money in pretax/traditional retirement accounts and this is a great strategy to use a big chunk of this money in a tax smart way before RMDs hit. Happy New Year! 🎊

[@ImaAHol]

Fantastic video. I love real life examples and optimization strategies. Thank you!

[@hm51008]

Excellent video explaining how ordinary income and capital gains impact your tax bill. It’s a complex topic but very important to understand as it relates to planning out your retirement spending.

[@robbymorris3038]

Great examples to illustrate how important buckets can be. Best video I've seen on this topic!

[@ErinTalksMoney]

Wow, thanks! 🙏

[@DzDivz]

Great video showing a fair amount of how things actually work and how to do the calculations. The calculations and relationships are so essential to tailoring your own situation. Cheers 🍻

[@andrewsoriano165]

Erin! You’re Good! Was Blown away! New Subscriber here!

[@davidhorton5965]

Wife retired a little over 18 months ago. I retire in about 6 years. Besides social security, we both have a pension. Looks like it will get a bit more complicated but doable. Thanks for the info and Happy New Year.

[@christopherwagner1584]

Thank you so much! This is the most helpful video I've seen so far on withdrawal strategies and how they impact taxes

[@ErinTalksMoney]

That makes me so happy!

[@michaelfortney7510]

A perfect example of how to make a great video with understandable content. This was very useful.

[@dirkmoore4224]

Thank you for all you do! What you do makes sense to me. Turning 71 this year and this helps a lot. I just subscribed!

[@ErinTalksMoney]

Welcome to the channel!!!

[@kathymills1959]

Great topic laid out in a way that was easy enough to follow and understand! Not retired yet but will certainly refer back to this topic when the glorious day comes! Thanks!!

[@ErinTalksMoney]

Glad it was helpful!

[@knikula]

you packed a lotta stuff in 12 minutes, nicely done...

[@lisaw7074]

Best video I've seen about this topic. Thank you so much for making the video and sharing with us!

[@ErinTalksMoney]

Thank you so much!

[@EinSeattle]

Your videos are so helpful, Erin. You've taken my personal finance knowledge to a new level.

[@MARTINRUTIAGA]

Wow your best video of the year!!! More of this type of content, I truly love this one!!

[@ErinTalksMoney]

Thank you so much! (but being that it is the first of 2025, it’s my only video this year 😉) 😂

[@RJN82]

Great video! I'm 65 and holding off on SS to maximize my monthly benefit payment, but if the promised elimination of federal taxes on SS occurs I'll probably start my SS benefits and accelerate my Roth conversions which I'm currently restricting at my tax bracket upper limit. It will be interesting to see how all of that works out.

[@tonynunez6539]

One thing that helped me is learning about using options to generate income. It takes some time to learn, but once you figure it out, it is automatic and can be very beneficial.

[@mikebridges20]

Erin, great topic today! We didn't do enough with Roth while on my first career (and wasn't available on my 2nd, which I just retired from), so we've got quite a tax exposure problem that we're trying to tackle. Our current strategy is to max out the 24% tax bracket, and with Trump's presidential win hopefully the current tax brackets will be made permanent.

[@RichieRich-pn3gg]

you speak beautifully. Love you feeding us with priceless knowledge.

[@khoasterful]

This is a great video for folks that are trying to stay under Federal Tax level, referencing year 2024. Just for additional data reference point, for folks that have (one or more of the following): RMDs + Dividends + Qualified Dividends + Social Security + Long term cap gains + others (eg side hustles) that results in, for example, > 100k AGI: - Short Term (ST) gains + Long Term (LT) gains ~ AGI, where ST gains are taxed first, then LT are taxed on TOP of that. If you are in this scenario (and most of us probably are), then taking some from ROTH might be appropriate to stay at the minimal federal tax level. - Sorry for being over complicated, but I know this is a FAQ, how gains are taxed if one has a combination of LT + ST + RMDs + others.

[@TimGardner416]

As always, a clear and concise explanation. Between pension and social security, it's challenging for us to minimize taxes. Nice problem to have, I know. I think what confuses some people is in understanding their allocation. If I pull X dollars from my traditional IRA or 401k, which investments do I pull it from? I currently use withdrawal as a way of rebalancing. So if the market is up, my withdrawals are most likely to come from my S&P index fund. If the market is down, it is likely that my bond fund will be the primary source of withdrawal. Again, your explanations are very clear. I know it takes a lot of time to come up with the right graphics and match them up with your descriptions, so I appreciate the time you must take to do this.

[@robc4440]

Thank You Erin. As always, great job explaining an extremely complicated topic. My wife and I, both plan to bow out this year. So much to consider. I will be re-watching this. Happy New Year.

[@ErinTalksMoney]

Happy new year! 🎈

[@dukaka2kaka886]

Wow! You've been rockin' the content lately!

[@jfesl]

Great video, actual information that's usable.

[@ChrisMiree]

These were very helpful strategies to assist me when I retire in 10 years. Thank you!

[@ErinTalksMoney]

Glad it was helpful!

[@yzsutty]

You made this topic so clear. Thank you.

[@earlyretireelivinlife]

This and all your videos are so helpful! Thanks for your efforts, its so appreciated by us early retirees!

[@ErinTalksMoney]

You are so welcome!

[@glockman99]

Great video!!! This really helped as we’re coming up on retirement in a couple of years. Thank you.

[@tab_nebraska235]

Many of us really appreciate your videos, Erin. Happy New Year!

[@ErinTalksMoney]

Happy new year!

[@GordonSux]

Genius! Exactly the info I was looking for.

[@dorinatudisco1308]

Thank you, Erin. I’ve not seen a video like this on KZbin before. Very helpful! I will likely get an accountant to help me with my withdrawal strategy. Two years or less for me!

[@ErinTalksMoney]

Glad it was helpful!

[@ld5714]

Happy New Year Erin! This was an exellent video and discussion. Your analysis and presentation was very methodical and easily understandable. I am confident this will help many of your followers, I know I will be reevaluating our withdrawals. Thanks for all you do on this channel. I'll see you on the next one. Larry, Central Valley, Ca.

[@ErinTalksMoney]

Thanks Larry! I hope you have a wonderful New Year! 😊

[@PSB-900]

Thanks Erin, I needed this explained to me in simple terms. RMD's are coming soon and monthly distributions sound just fine. Be well!

[@ErinTalksMoney]

Glad it was helpful!

[@tothra]

Slightly different topic that's in the same ballpark. I work for a municipality. When I retire in a couple years, half of my unused sick leave and all my unused vacation time will be cashed out to me in one check. By my estimates, that check before taxes will be around $25K. Instead of taking a massive tax hit due to my current tax bracket (working income plus this lump sum payout), the IRS allows me to direct my lump sum payout into my 403b plan (it's basically a 401k). I'll withdraw from that plan starting the following tax year after retirement, when I'll be in a lower tax bracket that's almost half the percentage bracket I'm in now. In fact, this is an option for many types of lump sum payouts. As Erin said, "every dollar saved in taxes is a dollar in your pocket". And a Happy New Year to Erin and sll her followers 😊

[@Jeff-Dr]

Great video! I have got to get smarter on this! The outtakes at the end are wonderful. Glad to see I’m not the only who can’t always get it right the first time. 👍🏻👍🏻

[@jasonhoff6407]

All the numbers make my head spin!

[@johnr7040]

Love this video, I’m looking at early retirement and working at fixing my buckets prior to that date.

[@heidikamrath1951]

Wonderful! Thank you so much, Erin!

[@ErinTalksMoney]

You're so welcome!

[@Hope4More312]

I seldom see a breakdown like this. Perfect!

[@HealthyKeto2.0]

Great information. Thanks for sharing. On a side note- get that fiddle fig by a window, it needs lots of sunshine!

[@MrGrumpy1]

I retired 3 years ago today. I've only withdrawn cash investments so far. I've let my stocks/funds ride the market up. From Erin's video there are a lot of ins-and-outs of a withdrawal strategy that I need to consider.

[@JosephCostigan-s8u]

Excellent video. Time to go back break out the paper and pencil (or spreadsheet) and check my strategy plan for 2025. Have a wonderful and prosperous new year.

[@ErinTalksMoney]

Happy new year!

[@charletfoster8917]

Nearing retirement, so this guide is sooo needed🙏🏿😊💎

[@raylotfi1318]

Good report with some reservations. They all say buy low, sell heigh. That means I prefer not mostly withdraw but I do depends of the market conditions.

[@petestandley2690]

Well done and the clean graphics make it easy to follow. Too many financial videos display spreadsheets which are great and all but almost impossible to follow in video form.

[@coast_into_retirement]

Thanks Erin, for another great video. I will save this to rewatch quite often .

[@ErinTalksMoney]

Glad it was helpful!

[@2ndSprings]

Classic bloopers! HAHA. You may be thinking the "Rule of 4%" because you are thinking of retiring early with "the Rule of 55 or 72(t)"? Great video and content as always. Thank you.

[@markt4605]

Thanks - Retiring this April (2025) - You explained the strategy very accurately.

[@ErinTalksMoney]

Thanks! Enjoy retirement!!

[@yokoyama7590]

Great information. This is a complex topic but you presented it very well. Thank you!

[@darylhaack7752]

Thanks for posting. You bring in great ideas even know Canada has a different tax schedule. The philosophy is much the same. Thanks for a different look at trying to obtain the least amount of tax. Cheers

[@JoseLNazario]

Thank you very much for this video, Erin!! You provided the details I was looking for in a withdrawal retirement strategy, in a very clear and efficient manner 👍 😊

[@ErinTalksMoney]

Glad it was helpful!

[@victorbaird8220]

Happy new year 😊 I am Extremely excited and grateful for the video 😊

[@ErinTalksMoney]

Happy new year!!

[@johnwasilenko170]

Thank you for such a beautiful presentation and intelligent summary. Your way of simplifying strategy with so many dynamic factors makes the journey so enjoyable. Happy New Year🎉

[@ErinTalksMoney]

Thanks for watching!! 😊 Happy New Year!

[@testodude]

This video is presented brilliantly.

[@sandylamba2546]

Great video Erin!

[@frankt1720]

Thank you for the great information. Happy and prosperous New Year!

[@ErinTalksMoney]

Happy new year!

[@thomashenkler4969]

I think one addition to the withdrawals would be to maximize what could be withdrawn from the 401k account even if it is more than needed and reinvest that in the Roth. Even in down markets it would be reinvested in the market and still recover. That would also reduce RMDs in the future.

[@edhettwer7920]

I think Roths only pay off for the wealthy. If you’ve been in the lower tax brackets most of your life, chances are you will be so in retirement. I do have young coworkers that are Roth from the beginning. I didn’t have that option from the start. Only had Roth through company recently. Guess I could have funded a separate Roth IRA.

[@jdgolf499]

As everyone else, I want to pay as little tax in retirement as possible, but there's one additional factor I use for withdrawls. I don't always use my brokerage account to reduce my taxes. If my EFFECTIVE tax rate will be lower than what my brokerage is returning, I will pull 100% from my taxable IRA, and continue to let the brokerage grow.

[@anbrohi]

this is a great video, really help me out with few questions

[@michaellambertus5169]

Thanks for mentioning market conditions could sway withdrawal amounts and bucket selection.

[@raghureddy1746]

Just amazing! Excellent presentation!

[@ErinTalksMoney]

Thanks!!

[@Kofi1496]

Happy New Year Erin, I like your content, it is very informative.

[@ErinTalksMoney]

Thank you!

[@aj5434]

Yes, need to consider income tax brackets, long term capgains brackets , social security taxable thresholds, filing status, ... but also don't forget medicare IRMAA (income related monthly adj amt) brackets which may increase yr monthly medicare premiums (based on adj gross income of 2 yrs prior tax return)