The Tax Implications of Roth vs Traditional 401k Withdrawals

Episode 12 of Retirement Planning with Fexingo dives into a question that trips up many savers: once you have a mix of Roth and traditional 401k money, how do you actually withdraw it tax-efficiently? Lucas and Luna break down the withdrawal rules, the pro-rata problem, and a real-world strategy called 'tax bracket stacking.' They use the example of a hypothetical retiree named Mark who has $400,000 in traditional and $150,000 in Roth 401k. Learn why Mark might want to start his traditional withdrawals earlier than planned and how to avoid triggering a higher tax bracket in retirement. The episode also covers how employer matching contributions are always pretax, even in a Roth 401k, and why that complicates your withdrawal strategy. Plus, a quick behind-the-scenes moment about how listener support keeps this podcast ad-free. #Roth401k #Traditional401k #RetirementWithdrawals #TaxPlanning #ProRataRule #TaxBracketStacking #EmployerMatch #PretaxContributions #RothVsTraditional #RetirementPlanning #FexingoBusiness #BusinessPodcast #Finance #PersonalFinance #TaxStrategy #401kWithdrawal #LucasAndLuna #ListenersLikeYou Keep every episode free: buymeacoffee.com/fexingo