An Optimization Model for Scheduling Withdrawals from Tax-Deferred Retirement Accounts

Authors

  • Cliff T. Ragsdale Department of Management Science, Virginia Polytechnic Institute and State University, Blacksburg, VA 24061-0235
  • Andrew F. Seila Department of Insurance, Real Estate, Legal Studies and Management Science, Terry College of Business Administration, University of Georgia, Athens, GA 30602-6255
  • Philip L. Little Department of Accounting, Western Carolina University, Cullowhee, NC 28723.

DOI:

https://doi.org/10.1016/1057-0810(94)90016-7

Abstract

As a growing number of Americans reach refiremen? age, more and more people are facing important decisions about how to withdraw savingsfrom tax-deferred retirement accounts (TDRAs). These decisions are complicated by the Federal Tax Code which imposes a number of rules and regulations on these withdrawals. Since these decisions collectively involve billions of dollars, the potential lossfrom even slightly suboptimal decision making is very large. In this paper, we present a mathematical programming model that can be used to assist retirees ami/or their advisors in determining the optimal schedule of withdrawals from TDRAs.

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Published

1994-12-30

Issue

Vol. 3 No. 2 (1994): Financial Services Review

Section

New Original Submission

License

Copyright (c) 1994 JAI Press Inc.

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How to Cite

An Optimization Model for Scheduling Withdrawals from Tax-Deferred Retirement Accounts. (1994). Financial Services Review, 3(2), 93-108. https://doi.org/10.1016/1057-0810(94)90016-7