Updated: 10/01/2024

Managing withdrawals and understanding their tax implications is a crucial part of developing a successful financial plan. That’s why we’ve created the “Taxation Guide to Withdrawals & Income Sources” summary guide—a comprehensive resource for advisors and clients alike.

This guide provides a high-level overview of the various accounts or assets from which clients might pull funds for income or funding goals, as well as the tax consequences for each source.

By having a clear understanding of how different withdrawal sources impact tax liability, advisors can help clients make informed decisions that optimize their tax situation.

With this guide, advisors can ensure their clients are pulling from the right sources at the right time, minimizing tax impacts and maximizing financial success.

This guide covers:

• Which withdrawal/income sources are subject to certain types of taxation (e.g., federal, state, 3.8% NIIT, etc.).
• Which withdrawal/income sources may have additional penalties.
• Whether certain withdrawal/income sources increase one’s AGI.
• Important planning nuances to be aware of regarding specific withdrawal/income sources.