My traditional IRA has $1.8 million and my Roth only has $300k - am I doing this right?

A Redditor with significant investment assets has sought advice on withdrawing from retirement accounts as he prepares for retirement. With $6.3 million in a brokerage account, $1.8 million in a traditional IRA, and a $300,000 Roth account, he expects to spend $200,000 annually post-tax and will begin collecting Social Security at 62. Experts suggest he primarily withdraw from his traditional IRA to minimize tax burdens and preserve his brokerage and Roth accounts for his heirs. This calculated approach allows for tax efficiency and potential inheritance benefits.

When the Redditor makes withdrawals, it's good to start with the traditional IRA. While these withdrawals are taxed, the Redditor can withdraw funds when they retire to lower their tax bill.

It's better to give your kids a small traditional IRA instead of $1.8 million since it's all taxable. On top of that, the children will likely earn income from jobs or businesses that will put them in higher tax brackets.

Read at 24/7 Wall St.