When my clients start entering retirement and the distribution stage of life, it can be helpful when they have some tax flexibility within their retirement nest egg. Meaning that they have monies saved in both a pre-tax traditional IRA and an after-tax Roth IRA. This allows us to plan withdrawals based on the type of tax year the client might be having. For example, if they happened to have a really high taxable income year because they sold a highly appreciated asset, we could look to the Roth IRA account for any needed distributions because those would be tax-free. On the other hand, if they have a very low taxable income year we could take their needed distributions from their taxable traditional IRA account. Click here for the other benefits of a Roth IRA.