The FIRE Withdrawal Sequence That Cuts Your Tax Bill in Half

Episode 68 of The FIRE Podcast with Fexingo digs into a specific withdrawal sequencing strategy that can slash taxes for early retirees. Lucas and Luna walk through a real-world scenario: a couple with $1.2 million in a traditional 401(k), $300,000 in a Roth IRA, and $200,000 in a taxable brokerage. By carefully choosing which accounts to draw from first and how to manage capital gains, they show how you can stay in the 0% long-term capital gains bracket while keeping ordinary income low. The episode covers the mechanics of the standard deduction, the 0% capital gains bracket, and the tax torpedo that hits when you accidentally push yourself into a higher bracket. No theory — just the math of a sample withdrawal plan that saves roughly $8,000 in taxes per year. They also discuss how this strategy interacts with ACA subsidies and the need to revisit the plan annually as tax brackets adjust for inflation. #FIRE #EarlyRetirement #TaxOptimization #WithdrawalStrategy #CapitalGains #RothIRA #TraditionalIRA #TaxBracket #StandardDeduction #TaxTorpedo #ACA #HealthInsurance #Finance #PersonalFinance #FexingoBusiness #BusinessPodcast #FIREPodcast #RetirementPlanning Keep every episode free: buymeacoffee.com/fexingo