Once work income stops, a plan has to decide which accounts to draw from first. Withdrawals from taxable, tax-deferred and Roth accounts are taxed differently, so the order affects how long your money lasts.
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You can claim from age 62 to 70, and each year of waiting increases the monthly benefit. For married couples, the higher earner's claiming age also sets the survivor benefit. We model the options against the rest of your plan.
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Required minimum distributions now begin at 73, or 75 for people born in 1960 or later. The years between retirement and RMDs can be a window to convert some pre-tax savings to Roth at lower tax rates.
Tennessee has no state income tax on wages or investment income, which can make Roth conversions, pension income and capital gains more efficient than in many states. Clients living in Georgia have a different picture.
Many Chattanooga-area retirees have a 401(k), a 403(b) or a pension. We review each plan's options, including whether to leave money in the plan or roll it over.
