Start here
The basics
The order answers ‘which dollar is sold next?’ It does not mean every account in an earlier tier must always be emptied. The engine takes only what the gap requires, subject to tax, balance, age, and account rules.
Illustrative numbers
A three-tier illustration
Gap after income$45,000
Cash tier supplies$10,000
Brokerage / retirement tiersraise the remaining net $35,000
A taxable source may need a gross withdrawal above $35,000. Once the net gap reaches zero, later tiers are untouched.
Calculation transparency
How it works in MoneyWhatIf
- 01
Required minimum distributions come first; a strategy rerun applies its Roth conversion next; inherited, Rule 72(t), and user-scheduled distributions follow before discretionary gap funding.
- 02
The saved list ranks account kinds and property. Within one account kind, matching accounts are visited in their plan order rather than pooled or optimized.
- 03
Property is used at its selected relative position. A forced sale reruns the plan with sale proceeds and tax; only after every allowed source is exhausted does an uncovered amount become a shortfall.
Keep in mind
Model limits
A priority order is a policy assumption, not an individualized tax recommendation.
The engine does not choose securities, tax lots, trading dates, or account custodian mechanics.
Changing the order can change tax, later balances, IRMAA, RMDs, and plan safety; compare the full rerun, not one year alone.
This explanation documents the planning model. It is educational, not individualized tax, legal, Medicare, or investment advice.
Where it appears
Where to use it
See this concept in context, with a guide to each page and its controls.
The words behind it
Related financial terms
Plain-English definitions, with 2026 figures and worked examples, from the financial terms glossary.