Whether you're thinking of retiring or are already there, pay close attention to this. The order in which you withdraw money in retirement could make the difference between a comfortable life or bare subsistence in your golden years.

Whenever possible, use funds from taxable accounts first. Leave your 401(k) and IRA alone. Tax deferred accounts grow faster because they compound before Uncle Sam gets his share.

Also remember, money removed from a 401(k) or IRA is taxed at ordinary income tax rates which could be as high as 35%.

But money in your taxable accounts with no capital gains can be withdrawn tax free. Even if you have capital gains, those gains are only taxed at 15%.

If you're already 70, and you must take a distribution, take only what is necessary. Take your time and use your money wisely for a happy retirement!

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