Offcanvas
(800) 644-1150

Roth, IRA, or Personal Money: Which Should You Spend First? – Episode 101

It’s not uncommon for people to reach their retirement years with money socked away in different types of accounts: a 401(k) from work, some personal money in a brokerage account, and maybe some Roth IRAs, to name a few.

Once you reach the stage of life where that money needs to be withdrawn, the important question is this: from which account(s) should my funds be taken out, and in what order?  Do I spend my fully-taxable IRA money first, do I defer and use the Roth or personal funds, or some combination of all?

Getting it right is vital.  Find out more about the “Spending Order of Funds” with podcast host Johnny Dean and his guest, “Professor” Rick Plum, CFP® on this week’s episode of Managing Your Financial Future!

Important Information:

The information provided should not be considered specific tax, legal, or investment advice and is not specific to any individual’s personal circumstances.

You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.

No client or prospective client should assume that the presentation (or any component thereof) serves as the receipt of, or a substitute for, personalized advice from Lucia Capital Group or from any other investment professional.

IRA withdrawals will be taxed at ordinary income rates. Withdrawals prior to age 59½ may also be subject to a 10% penalty tax.

Roth IRA distributions of principal from a Roth IRA are tax-free; however, any earnings will be taxed at ordinary income rates and a 10% penalty tax will apply if withdrawn prior to age 59½ or within five years of the date the Roth IRA was established, whichever is longer.

Rick Plum is a registered representative with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group, a separate entity from LPL Financial.

Start Your Strategy

Personalized investment advice and support to help grow your portfolio