A 401(k) plan is an example of a tax-deferred vehicle ... usually toward 401(k), 403(b), SARSEP and/or SIMPLE IRA plans. The elective deferral limit for these plans is $23,500 in 2025.

Let’s look at a simple example of asset location ... but this time asset location is implemented. The tax-deferred account holds 100% of the bonds ($150,000) and $100,000 of stocks.

A common approach to retirement income relies on withdrawing money from taxable accounts first, followed by 401(k)s and IRAs, and lastly, Roth accounts. Conventional wisdom holds that withdrawing ...