The withdrawal sequence is the order in which money is taken out of different accounts in the distribution phase (post-retirement) of the wealth forecast. The default withdrawal sequence withdraws money first from taxable accounts, then after-tax deferred accounts, then pre-tax deferred accounts. You can override the default withdrawal sequence with a custom withdrawal sequence.
The Withdrawal Sequence settings are located under the Investment Planning tab, Plans page. Open a plan from the grid and navigate to the Forecast page under the Wealth Forecast section.
To create a custom withdrawal sequence, do the following:
On the Forecast screen, click Settings, then select Withdrawal Sequence. The Withdrawal Sequence Settings dialog box opens.
For each account listed, enter a number between 1 and 100 in the Withdrawal Order box, or click the arrows to select the number.
Note: The default is 1 for taxable accounts, 11 for tax deferred accounts, and 41 for 401(k) accounts.
Click Update. The accounts are reordered from low to high.
To save your changes, click OK. You are returned to the Forecast page.