--- title: New Year, New Retirement Withdrawal Strategy? description: The new year could be a great time to take a fresh look at your withdrawal strategy (and reap the reward of a lower tax liability). Read this post for insights from Heyday contributor, retirement author and professor, Dr. Moshe Milevsky. image: https://www.heydayretirement.com/hubfs/twenty20_b9d32def-1e1b-458d-b4b8-9a80715ad9e1.jpg --- [![Heyday Retirement](https://www.heydayretirement.com/hubfs/Feb-2018/Header-footer/heyday-logo.svg "Heyday Retirement")](https://www.heydayretirement.com) - Why Heyday? - [Features](https://www.heydayretirement.com/features) - [Clients](https://www.heydayretirement.com/featured-clients) - [Security](https://www.heydayretirement.com/security) - Solutions For Retirees - [Concern About Volatile Markets](https://www.heydayretirement.com/volatile-markets) - [Getting Income Now with Security](https://www.heydayretirement.com/income-and-security) - [Planning for Surviving Spouse](https://www.heydayretirement.com/surviving-spouse) - [Plan How Much You Can Safely Spend](https://www.heydayretirement.com/safe-spending) - [Create Annuity Income](https://www.heydayretirement.com/annuity-income) - [Decide When You Can Retire](https://www.heydayretirement.com/retire-now-or-wait) - Resources - [Free Guidebooks](https://www.heydayretirement.com/retirement-guides) - [Free Videos](https://www.heydayretirement.com/online-retirement-workshops) - [Retirement Magazine](https://www.heydayretirement.com/heyday-blogs) - [Heyday Contributors](https://www.heydayretirement.com/about-our-contributors) - [Pricing](https://www.heydayretirement.com/pricing) - [The Heyday Approach](https://www.heydayretirement.com/the-heyday-retirement-income-strategy) - [About Us](https://www.heydayretirement.com/about-us) - [Contact](https://www.heydayretirement.com/contact-us) - [Sign In](https://app.heydayretirement.com) - [Book Your Appointment](https://www.heydayretirement.com/schedule-your-intro-meeting) - [Retirement income planning (44)](https://www.heydayretirement.com/heyday-blogs/tag/retirement-income-planning) - [Retirement strategy (40)](https://www.heydayretirement.com/heyday-blogs/tag/retirement-strategy) - [Retirement living (19)](https://www.heydayretirement.com/heyday-blogs/tag/retirement-living) - [Articles & news (6)](https://www.heydayretirement.com/heyday-blogs/tag/articles-news) - [Articles & news (6)](https://www.heydayretirement.com/heyday-blogs/tag/articles-news) - [Retirement income planning (44)](https://www.heydayretirement.com/heyday-blogs/tag/retirement-income-planning) - [Retirement living (19)](https://www.heydayretirement.com/heyday-blogs/tag/retirement-living) - [Retirement strategy (40)](https://www.heydayretirement.com/heyday-blogs/tag/retirement-strategy) # New Year, New Retirement Withdrawal Strategy? Share on Twitter Share on Facebook [![](https://www.heydayretirement.com/hubfs/twenty20_b9d32def-1e1b-458d-b4b8-9a80715ad9e1.jpg)](https://www.heydayretirement.com/heyday-blogs/new-year-new-retirement-withdrawal-strategy) For retirees who are already receiving income from their 401(k) or other accounts, the new year is a great time to evaluate how their distributions and other withdrawals could be impacting their income taxes. For example: - Retirement accounts like 401(k)s are tax-sheltered, meaning the money goes into the account tax-free, and therefore taxes must be paid when the funds are withdrawn. - Roth IRA funds are taxed before going into the account, meaning retirees can make tax-free withdrawals.  Between pensions, annuities, 401(k)s, Roth or traditional IRAs, stocks and bonds, many retirees will have a mix of both tax-sheltered and pre-taxed accounts. Understanding when to withdraw from each of them to help maximize tax savings could really add up over the course of your retirement.  In the clip below, Heyday contributor, retirement author and professor of finance at York University, [Dr. Moshe Milevsky,](https://www.heydayretirement.com/about-our-contributors-milevsky) shares some high-level insights that may help minimize your tax liability in retirement. Of course, every situation is different, and retirees should always consult with their tax professional before changing their withdrawal strategy.    Did you pass the quiz?  In the specific example provided, the best withdrawal approach is the exact opposite of what most would expect… But you have to [watch the video](https://heydayretirement.wistia.com/medias/cyeoryklnx) to see what it is!  Taxation is one of many complex challenges retirees must navigate, and we recommend working with a tax professional to do so.  There are several other key risks that should be addressed. To discover what they are and how to help address them, watch Dr. Milevsky’s on-demand presentation, [*The 7 Most Important Equations for Your Retirement*](https://www.heydayretirement.com/workshop-important-retirement-equations).  Be sure to meet with your advisor or financial representative to determine the best approach for your unique situation and goals. If you’d like to speak with a Heyday Assistant about your retirement income strategy, [schedule a complimentary call](https://www.heydayretirement.com/schedule-your-intro-meeting) for a time that works best for you. \*\*Tax rates provided in the video are for illustrative purposes only.  ###### Interested in securing more retirement income? #### Try the Heyday app. [BOOK YOUR APPOINTMENT](https://www.heydayretirement.com/schedule-your-intro-meeting) ![Cindy Collins](https://www.heydayretirement.com/hubfs/Feb-2018/contributors/collins.png) #### Written by [Cindy Collins](https://www.heydayretirement.com/heyday-blogs/author/cindy-collins) *Forbes* Contributor & Retirement Financial Professional Cindy Collins is a Heyday Retirement contributor with over 30 years of experience in personal financial services. ![](https://www.heydayretirement.com/hubfs/Feb-2018/Blog/img/about%20logo.svg) #### About Heyday Heyday is a premier source for comprehensive tools and informative content designed to help retirees build a secure retirement income plan. 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