Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Why does ORP begin withdrawals from both the Tax-deferred and the After-tax Accounts until the After-Tax Account is depleted rather than solely from the After-Tax Account until it is depleted?

0

Taxes! When larger Tax-deferred withdrawals tend to kick you up to a higher tax bracket, ORP tries to dampen out the damage by doing parallel distributions from both accounts. It’s a subtle point, but important.

Related Questions

What is your question?

*Sadly, we had to bring back ads too. Hopefully more targeted.