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February 16, 2009

Retirement Spending Phase



The period during which an individual spends the retirement savings that he/she accumulated to finance his/her retirement. In an ideal situation, the spending phase occurs after the individual has retired. However, in this era where an increasing number of individuals are experiencing working-retirements, the spending-phase and the accumulation phase sometimes occur concurrently.

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Additional Helpful Information

During the spending phase, an individual must take care to implement a strategic spending program, where a determination is made as to the most financial-effective order his/her assets should be spent. For instance, in which taxable (tax-deferred) , non-taxable and trax-free assets should be spend.


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Qualified Charitable Distribution (QCD)

Definition A distribution that is excludable from the distributee’s income, as a result of meeting the following requirements: It is made after the distributee reaches

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Catch-up Contribution

Definition An additional contribution that can be made to a retirement plan by a participant who is at least age-50 by the end of the

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