A method for selecting among taxable accounts, non-deductible tax-deferred
accounts, deductible tax-deferred accounts, and tax-exempt accounts from
which to withdraw funds to minimize tax consequences prioritizes
withdrawal from taxable accounts and non-deductible tax-deferred accounts
over withdrawal from deductible tax-deferred accounts and tax-exempt
accounts. The method also prioritizes between taxable accounts and
non-deductible tax-deferred accounts by comparing (i) a future after-tax
liquidation value of assets held in taxable and non-deductible
tax-deferred accounts assuming withdrawals are made from the taxable
accounts prior to a withdrawal from the non-deductible tax-deferred
accounts and (ii) a future after-tax liquidation value of assets held in
taxable and non-deductible tax-deferred accounts assuming withdrawals are
made from the non-deductible tax-deferred accounts prior to a withdrawal
from the taxable accounts.