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Gilead Sciences Blueprint for Tax-Efficient IRA Withdrawals

“Gilead Sciences employees who work with a legal or tax advisor to create a structured drawdown strategy—aligning withdrawal sequencing with projected income needs and anticipated tax law changes—can help mitigate their lifetime tax burden.”— Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

“By working with a legal or tax advisor to thoughtfully sequence withdrawals from taxable, tax-deferred, and tax-free accounts—and incorporate Roth conversions in low-income years—Gilead Sciences employees can help mitigate their retirement tax burden.”— Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

Tax-efficient drawdown strategies for retirement savings
Managing required minimum distributions to help control taxes
Optimal asset location techniques for after-tax returns

Although taxes can erode a sizable portion of retirement assets, Gilead Sciences employees can benefit from a systematic strategy known as tax-efficient drawdowns to help preserve more of their savings.

There are distinct tax treatments for different retirement savings vehicles—tax-deferred accounts (such as traditional IRAs and 401ks), tax-free accounts (like Roth IRAs), and taxable brokerage accounts. Taking funds from the wrong bucket at the wrong time may trigger unnecessary taxes, push income into higher brackets, or even increase Medicare Part B and D premiums. Crafting a withdrawal sequence that aligns account types with income needs and anticipated tax liabilities can help to optimize post-career income.

Important Takeaways

- A planned withdrawal order can help extend the longevity of your retirement portfolio.

- Withdrawal timing and tax impact differ across tax-deferred, tax-free, and taxable accounts.

- Capital gains management and required minimum distribution (RMD) planning play a pivotal role in overall tax obligations.

- Personalized strategies—based on income profiles, asset allocations, and health considerations—help align outcomes to individual needs.

What a Withdrawal Sequence Means

A retirement drawdown involves withdrawing money from your investment and retirement accounts—such as taxable brokerage accounts, 401ks, Roth IRAs, and traditional IRAs—to fund living expenses after work ends. Research indicates that a systematic hierarchy of withdrawals from these accounts, based on their tax treatment, can extend retirement savings by three years or more. ¹

Tyson Mavar, a financial advisor with Wealth Enhancement, explains the thinking behind this strategy. When retirees withdraw funds from taxable accounts, taxes apply only to capital gains, which are generally taxed at favorable rates (0%, 15%, or 20%, depending on total income). Withdrawing these funds while still in your earning years could help mitigate your overall tax burden. For their part, funds drawn from tax-deferred accounts (such as 401ks and traditional IRAs), are typically taxed at ordinary income tax rates—so these withdrawals may make more sense during lower earning years. Finally, Roth IRAs allow for tax-free withdrawals. Delaying withdrawals from these tax-favored accounts gives them more time to grow tax-free.

To determine the best withdrawal sequencing for your needs, it's important for Gilead Sciences employees to consider their individual circumstances. For example, partial Roth IRA distributions after the five-year holding period may be advantageous in early retirement years if your taxable income is particularly low and could help to manage future RMD requirements.

Managing the Necessary Minimum Distributions

Current IRS rules require account owners to begin RMDs from employer-sponsored plans and traditional IRAs by April 1 of the year after they turn 73 if they were born between 1951 and 1959. For those born in 1960 or later, RMDs start at 75. If not managed carefully, these mandatory distributions—treated as ordinary income—can raise annual tax bills for Gilead Sciences employees.

In the decade leading up to RMD age, Mavar often advises clients to consider Roth conversions. Because Roth IRAs do not mandate RMDs, shifting assets from a traditional IRA to a Roth IRA allows your money to grow tax-free. That said, the conversion itself incurs income tax at current rates. Strategic timing of conversions in low-income years may help control taxable income and may lower total lifetime taxes.

Optimizing Asset Placement

Asset positioning—placing investments in the most tax-advantageous accounts—is key to efficient drawdowns. Interest-generating investments (like bonds, actively managed mutual funds, and real estate investment trusts) often produce income taxed at ordinary rates, making them ideal candidates for Roth or tax-deferred accounts. Conversely, tax-efficient holdings (such as municipal bond funds and broad market index funds) can be held in taxable accounts, where favorable dividend and long-term capital gains rates apply.

Customization and Comprehensive Planning

No single drawdown plan fits every retiree. A thorough strategy considers factors like current and future income needs, Social Security claiming tactics, medical expenses, legacy goals, and potential tax law changes. Incorporating these elements into a cohesive plan can position Gilead Sciences employees to preserve assets for lifelong income and intergenerational wealth transfer.

At Wealth Enhancement, Tyson Mavar and his team specialize in designing customized withdrawal plans. Leveraging their deep knowledge of tax law, investment management, and retirement income planning, they guide clients through complex choices—such as adjusting withdrawals to mitigate Medicare surcharges and evaluating Roth conversions against market conditions.

In Conclusion

After a career of diligent saving, you deserve a retirement plan that helps you keep more after-tax income. When thoughtfully designed and personalized, tax-efficient drawdowns can help make funds last longer. Working with an experienced advisor to navigate capital gains tax management, RMD rules, account hierarchies, and evolving tax laws can yield real savings and greater financial flexibility.

Learn how to navigate RMD implications, manage taxable income, and preserve lifetime savings through strategies like qualified charitable distributions, Roth conversions, and optimized drawdown sequencing. It’s akin to conducting a symphony: you start with the soft strings of taxable brokerage gains, introduce the warmer woodwinds of tax-deferred accounts, let your Roth “brass” soar tax-free, and weave in timely “Roth conversion” solos before the RMD percussion begins—making sure every instrument complements the ensemble without overpowering it.

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Sources:

1. Financial Analysts Journal. ' Tax-Efficient Withdrawal Strategies ,' by Kirsten A. Cook, William Meyer & William Reichenstein. 28 Dec. 2018.

Other Resources:

1. Sumutka, Alan R., Andrew M. Sumutka, and Lewis W. Coopersmith. “Tax-Efficient Retirement Withdrawal Planning Using a Comprehensive Tax Model.” Journal of Financial Planning , vol. 25, no. 4, Apr. 2012, pp. 41–52.

2. Neufeld, Dorothy. “How Required Minimum Distributions Impact Your Traditional IRA Balance.” Investopedia , 14 Apr. 2025, https://www.investopedia.com/required-minimum-distributions-impact-traditional-ira-balance-11711080 .

3. Vanguard Group. “Asset Location Can Lead to Lower Taxes.” Vanguard , Aug. 2024, https://investor.vanguard.com/investment-stewardship/asset-location .

4. Morningstar Editors. “How to Spend From Your Portfolio Tax-Efficiently in Retirement.” Morningstar , Nov. 2024, https://www.morningstar.com/articles/2024/11/how-to-spend-tax-efficiently .

5. Kitces, Michael. “Navigating Income Harvesting Strategies: Harvesting (0 %) Capital Gains Vs. Partial Roth Conversions.” Kitces.com , 22 July 2020, https://www.kitces.com/blog/navigating-income-harvesting-strategies-harvesting-vs-roth-conversions .

How does Gilead's approach to employee benefits evolve to ensure comprehensive health coverage for full-time and part-time employees, and how do these benefits align with industry standards? Additionally, considering the competitive landscape, what specific initiatives does Gilead undertake to maintain and enhance its health benefits offering?

Gilead ensures comprehensive health coverage for both full-time and part-time employees by offering competitive medical, dental, and vision plans. Full-time employees, as well as part-time employees working at least 30 hours a week, are eligible for a range of health benefits, including coverage for spouses, domestic partners, and dependent children. This benefits package includes life and disability insurance, health savings accounts, and wellness services such as biometric screenings and fitness reimbursements, aligning with industry standards(Gilead_2016_Company_Peo…).

In what ways does Gilead's professional development program contribute to the personal and career growth of its employees? How does Gilead gauge the effectiveness of these development initiatives, and what feedback mechanisms are in place to continually improve the offerings?

Gilead’s professional development program contributes to employees' personal and career growth through extensive training opportunities, leadership development programs, and an MBA program in partnership with Golden Gate University. Gilead monitors the effectiveness of these initiatives through completion metrics, feedback surveys, and by tracking career progression. A continuous feedback loop ensures that employee development programs evolve based on participants’ experiences and business needs(Gilead_2016_Company_Peo…).

Gilead emphasizes a pay-for-performance model in its compensation structure. How does this model operate in practice, and in what ways are performance metrics tied to employee compensation at Gilead? Moreover, how does the company ensure transparency and fairness in its pay practices?

Gilead operates a pay-for-performance model, where employee compensation is directly tied to individual performance evaluations and business results. Regular reviews ensure that compensation remains fair and competitive, with transparency maintained through structured performance assessments. Gilead promotes pay equity, regularly reviewing compensation practices to ensure fairness and alignment with market conditions(Gilead_2016_Company_Peo…).

Given the unique challenges associated with employee parental leave, how does Gilead support employees who are navigating this transition? Furthermore, how are Gilead's policies aligned with or surpassing industry standards regarding parental leave and adoption benefits?

Gilead supports employees during parental leave transitions by offering 12 weeks of paid leave for new parents in the U.S., along with adoption benefits and reimbursements of up to $5,000. This benefit, extended to both U.S. and international employees, ensures legislative compliance and alignment with market standards, often surpassing industry norms(Gilead_2016_Company_Peo…).

With the increasing importance of mental health support in the workplace, how does Gilead's Employee Assistance Program (EAP) address the diverse wellness needs of its employees? In what ways does Gilead promote the utilization of these services to ensure engagement and effectiveness?

Gilead’s Employee Assistance Program (EAP) addresses a broad range of wellness needs, including mental health support, counseling, and legal or financial assistance. The company promotes these services through internal communications and wellness campaigns, ensuring employees are aware of and engage with these offerings, which are designed to provide confidential and comprehensive support(Gilead_2016_Company_Peo…).

How does Gilead foster an inclusive work environment that values diversity? What specific programs and initiatives are in place to promote inclusion, and how does Gilead measure the success of these diversity initiatives?

Gilead fosters an inclusive work environment through Employee Resource Groups (ERGs) and diversity initiatives aimed at professional development and community engagement. The company measures the success of its inclusion efforts through employee feedback, participation in diversity programs, and performance management processes that now include “inclusion” as a core value(Gilead_2016_Company_Peo…).

Considering Gilead's Employee Stock Purchase Program (ESPP), how do the company's policies encourage employee investment in Gilead? What benefits do employees gain from participating in the ESPP, and how does it contribute to their overall financial well-being?

Gilead’s Employee Stock Purchase Program (ESPP) encourages investment by offering U.S. employees the ability to contribute 1-15% of their pay to purchase Gilead stock at a 15% discount. This program helps employees build financial security and aligns their interests with the company's success, contributing to overall financial well-being(Gilead_2016_Company_Peo…).

What role does volunteerism play within Gilead's corporate culture, and how does the company facilitate employee engagement in community service initiatives? Additionally, how does participation in these programs impact employee satisfaction and retention rates?

Volunteerism is integral to Gilead’s corporate culture, with the company supporting employee involvement in community service through its Gilead Volunteer Community. These activities align with Gilead’s mission and values, and participation positively impacts employee satisfaction and retention by fostering a sense of purpose and community engagement(Gilead_2016_Company_Peo…).

How does Gilead ensure that its benefits package remains competitive within the biotechnology industry? What strategies does Gilead employ to regularly assess and enhance its offerings to meet the evolving needs of its workforce?

Gilead ensures its benefits package remains competitive by regularly reviewing and benchmarking against industry standards. The company adjusts offerings to meet evolving employee needs, particularly in areas like health and wellness, retirement plans, and work-life balance, ensuring that its benefits are both market-competitive and supportive of long-term employee well-being(Gilead_2016_Company_Peo…).

For employees seeking more information about Gilead's benefits and retirement options, what are the best channels to contact Gilead? How does Gilead ensure that employees have access to clear and timely information regarding their benefits, and what resources are available to assist them during the retirement process?

Employees seeking more information about Gilead’s benefits and retirement options can access resources through the company’s HR portals, internal communication channels, or by contacting HR directly. Gilead provides clear, timely information and offers comprehensive resources such as retirement planning consultations and financial wellness programs to assist employees during the retirement process(Gilead_2016_Company_Peo…).