What Does This Chart Mean?

This chart shows a recommended annual withdrawal plan based on a forecast of the future value of your different retirement income sources. It demonstrates how much you could withdraw from your various accounts each year to achieve the most favorable tax scenario. For example, the chart may recommend withdrawing less from a tax-deferred 401(k) account early in retirement, while withdrawing more from a Roth IRA, which requires no taxes on withdrawals. The forecasted future value is based on different confidence levels about market performance trends. You can adjust these levels to view the recommended withdrawal plan for different market performance projections. Consult your tax advisor for specific information on your tax situation.