Investment Withdrawal Order
Which account to tap first? · Updated 2026
Optimal Withdrawal Order
The sequence in which you withdraw from different account types can save tens of thousands in taxes over a long retirement. The standard strategy for early retirees:
1. Taxable brokerage first (lowest tax impact, LTCG rates) 2. Tax-deferred accounts second (401k/IRA, taxed as income) 3. Roth accounts last (completely tax-free growth)
This preserves your most tax-efficient assets for as long as possible.
| Priority | Account Type | Tax Treatment | Best For |
|---|---|---|---|
| 1st | Taxable Brokerage | LTCG 0-20% | Early retirement years |
| 2nd | Traditional 401k/IRA | Ordinary income 10-37% | Middle retirement |
| 3rd | Roth IRA/401k | Tax-free | Late retirement / legacy |
Frequently Asked Questions
How is investment withdrawal order calculated?
The formula is: Taxable → Traditional → Roth. Enter your values above and click Calculate to see your personalized result instantly. The general rule for early retirees: spend taxable accounts first (lowest tax impact), then traditional accounts (taxed as ordinary income), and save Roth for last (tax-free growth). This sequencing…
What inputs do I need for the investment withdrawal order?
You need: Taxable Balance, Traditional Balance, Roth Balance, Annual Need. Default values are pre-filled — adjust them to match your personal finances for a customized result.
Is the investment withdrawal order free to use?
Yes — all TorchFI calculators are completely free. No registration, no email required. Calculations run entirely in your browser for maximum privacy. We never see or store your financial data.
How does the investment withdrawal order help with FIRE planning?
Determine the optimal order to withdraw from your taxable, traditional, and Roth accounts to minimize taxes in early retirement. This calculator helps you make data-driven decisions about your financial independence journey instead of relying on guesswork.