I question the advice—is it time to reconsider tapping your Roth last after your 401(k) and IRA?

Is It Time to Reconsider Tapping Your Roth Last After Your 401(k) and Traditional IRA?

The classic retirement withdrawal advice is straightforward: drain taxable brokerage accounts first, hit your 401(k) and traditional IRA next (tax-deferred), and save the Roth accounts for last (tax-free). The logic? Let the tax-advantaged money grow longer without Uncle Sam taking a cut each year.

But you’re right to question it—plenty of experts and retirees are rethinking this in 2026. The old rule works great for some, but it can backfire for others, especially with rising tax brackets, bigger RMDs, Medicare surcharges (IRMAA), and Social Security taxation in play. For many, drawing on traditional accounts earlier—or even proportionally—ends up saving more money in the long term.

Here’s the straight scoop based on current strategies and data.

The Traditional Sequence (and Why It’s Still Popular)

1. Taxable accounts first — Withdraw from brokerage or savings. Gains get favorable capital gains rates (often 0-15% early in retirement), and it gives your retirement accounts more time to compound.
2. Tax-deferred next — 401(k)s and traditional IRAs. Withdrawals count as ordinary income, but you control the timing to stay in lower brackets.
3. Roth last — Tax-free growth and withdrawals, no RMDs during your lifetime. Preserve this “crown jewel” as long as possible.

Fidelity’s modeling shows that this sequential approach can extend portfolio life by allowing tax-advantaged money to grow. Schwab and BlackRock still list it as a solid baseline. It maximizes tax-deferred compounding and keeps Roth funds untouched for heirs (who often inherit them tax-free, too).

Why More People Are Questioning (and Sometimes Flipping) It in 2026

The rethink comes from real-life factors that weren’t as big a decade ago:

• RMDs force your hand — Starting at age 73 (or 75 if born later), you must withdraw from traditional accounts. Big RMDs can push you into higher brackets, tax more of your Social Security, and trigger IRMAA surcharges on Medicare premiums (starting around $109,000 MAGI for singles in 2026). Drawing down traditional balances earlier reduces future RMD size.
• Low early-retirement brackets — Many retirees have lower income right after stopping work. Filling those low brackets (e.g., 12% or 22%) with traditional IRA withdrawals—or doing partial Roth conversions—locks in today’s rates before potential hikes or bracket creep.
• Proportional or dynamic withdrawals often win — Fidelity simulations show spreading withdrawals across all buckets (taxable, traditional, Roth) smooths taxes, avoids “tax bumps,” and can add a year or more to savings longevity. Morningstar and others highlight filling low brackets early while preserving Roth for later high-income years.
• Roth’s unique perks shine later — Roth withdrawals don’t count toward provisional income (for Social Security taxability) or MAGI (for IRMAA). Saving them for when healthcare or legacy needs spike makes sense—but only if you proactively manage the traditional side.

A veteran retirement planner put it bluntly: “The ‘Roth last’ rule assumes static taxes and no RMD bombs. In 2026, with brackets adjusting and healthcare costs rising, many clients save thousands by accelerating traditional draws or conversions in low-income years.”

When to Stick With “Roth Last” vs. Reconsider

Stick with the classic order if:

• Your tax rate now is higher than expected in retirement.
• You have minimal traditional balances (low RMD risk).
• You want maximum compounding in tax-free accounts.

Reconsider (pull traditional earlier or proportionally) if:

• You’re in a low bracket early in retirement.
• Big traditional balances mean hefty future RMDs.
• You want to minimize Medicare surcharges or Social Security taxation.
• You’re planning Roth conversions anyway.

Bottom line: No one-size-fits-all. Run personalized projections—tools from Fidelity, Vanguard, or a financial advisor factor your specific numbers, state taxes, and longevity.

Final Thought: The old “Roth last” advice isn’t wrong—it’s just incomplete for today’s reality. With smarter bracket management and RMD planning, many retirees come out ahead by tapping traditional accounts sooner. Questioning it is smart; customizing it is smarter.

Have you run the numbers for your situation? What’s your biggest worry—RMDs, taxes, or something else? Share in the comments below, and let’s keep the conversation going!