How Different Income Sources Are Taxed in Retirement

Two retirees with identical account balances can end up with very different tax bills, because it's not just how much you withdraw that matters, it's where the money comes from. Traditional accounts, Roth accounts, taxable brokerage accounts, and annuities are all taxed on different terms.

Sequencing withdrawals across these sources thoughtfully, rather than default order, is one of the more overlooked ways to manage a retirement tax bill over time.