Faculty Publications

Title

How Do Taxes Affect The 4% Rule?

Document Type

Article

Publication Date

7-28-2016

Abstract

Most research on sustainable spending rates assumes spending is either from a tax-free account such as a Roth IRA, or a tax-deferred account such as a traditional IRA. In the latter case, spending is assumed to be gross of taxes, as any taxes due must be paid from the distributions.