Cautious_Second7321 OP t1_j2bv00y wrote on December 31, 2022 at 2:28 AM

When you withdraw that 2.5-3.5% doesn’t it complicated depending on if you withdraw from pretax or after tax accounts?

So, let’s say year 1 of retirement I withdraw 3.5% of $1,000,000 ($35,000) wouldn’t I be hit with taxes at the 22% rate on the 35K?

I know everyone says it’s easy, but am I thinking about this the right way?

UMfan11244 t1_j2bw0fw wrote on December 31, 2022 at 2:36 AM

Yes, you are. Taxes would have to be included in your annual expense estimate. Keep in mind, if your income is low Social Security will not be taxed.

Remember taxes are progressive. You aren't changed 22% on the entire amount. Only on the amount above the previous tax bracket.