US Patent 7630929 Planning withdrawals from financial accounts

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.