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Southwest Gas Holdings Blueprint for Tax-Efficient IRA Withdrawals

“Southwest Gas Holdings 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—Southwest Gas Holdings 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, Southwest Gas Holdings 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 Southwest Gas Holdings 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 Southwest Gas Holdings 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 Southwest Gas Holdings 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 the Southwest Carpenters Pension Plan accommodate changes in benefits for employees who have been affected by the COVID-19 pandemic, and what specific provisions have been implemented to ensure continuity of pension credit during such interruptions? Employees of the Southwest Carpenters Pension Plan are particularly encouraged to review how these provisions may impact their retirement plans and benefits, especially given the unprecedented circumstances of the pandemic.

The Southwest Carpenters Pension Plan accommodated changes due to COVID-19 by extending various deadlines for participants, such as the 12-month deadline to apply for pension credit for periods of disability, and other deadlines regarding claims and appeals. These extensions were applied from March 1, 2020, to a period of up to one year after the original deadline or 60 days after the end of the COVID-19 national emergency, ensuring continuity of pension credit during the pandemic interruptions(Southwest Carpenters Pe…).

What enhancements to pension benefit calculations have been introduced for the years following January 1, 2021, under the Southwest Carpenters Pension Plan, and how do these changes affect participants working more than 1,800 hours? This question emphasizes the implications of increased benefit accrual rates and the actual processes employees must follow to calculate their pensions effectively.

Enhancements to pension benefit calculations effective January 1, 2021, under the Southwest Carpenters Pension Plan include an increase in the monthly benefit accrual rate for participants working 1,800 hours or more. The rate increased from $100 to $200, and for those working more than 1,800 hours, a maximum benefit accrual rate of $244.44 was introduced(Southwest Carpenters Pe…).

In the context of the Southwest Carpenters Pension Plan, could you explain the eligibility criteria for receiving a Service Pension and how employees can accumulate the necessary Pension Credits more quickly? This consideration is vital for members who wish to understand the retirement options available to them and the strategies they might employ in their careers to maximize their benefits under the Southwest Carpenters Pension Plan.

Employees of the Southwest Carpenters Pension Plan are eligible for a Service Pension after earning 30 years of Pension Credit. Additional Service Pension Eligibility Credit was introduced, allowing employees working over 1,800 hours annually to accumulate credits more quickly, up to a maximum of 2,200 hours(Southwest Carpenters Pe…).

How do temporary disability benefits interact with the accumulation of Pension Credits within the Southwest Carpenters Pension Plan? Specifically, employees may have questions about how their working history and service time might be affected should they take leave for health-related reasons, highlighting the intricate balance between pay and benefits during challenging times.

Temporary disability benefits under the Southwest Carpenters Pension Plan allow participants to accumulate Pension Credits during non-working periods if they are on short-term disability or receiving workers' compensation. Pension Credits can be granted for up to 1,200 hours annually, depending on the nature of the disability and employment history(Southwest Carpenters Pe…).

What are the implications of the revised definitions under the Required Beginning Date as specified by the Southwest Carpenters Pension Plan, particularly in compliance with the SECURE Act (Setting Every Community Up for Retirement Enhancement Act)? Employees should understand how these legislative changes affect their retirement strategies, especially in light of penalties for failing to comply with mandatory commencement dates.

The Required Beginning Date for the Southwest Carpenters Pension Plan was revised to comply with the SECURE Act. Participants born on or after July 1, 1949, must begin receiving benefits by April 1 of the calendar year following the year they turn 72. Failure to comply with this could result in a 50% excise tax(Southwest Carpenters Pe…).

How can employees of the Southwest Carpenters Pension Plan navigate the process for applying for pension credit during periods of Temporary Disability, and what specific documentation is required? This inquiry encourages a deeper understanding of protocol surrounding disability applications and the associated benefits that participants are entitled to under the Plan.

Employees applying for pension credit during periods of Temporary Disability must submit a written application within one year of the onset of the disability, and provide documentation such as state-approved short-term disability certification or workers' compensation benefits(Southwest Carpenters Pe…).

What are the implications of the retroactive increases to the Southwest Carpenters Pension Plan benefits aimed at participants who accrued credit during the years 2011 to 2020, and how can affected employees determine their eligibility for said increases? Employees often seek clarification on how historical contributions can manifest in current benefits.

Retroactive increases to the Southwest Carpenters Pension Plan benefits for the years 2011 to 2020 apply to participants who worked at least 1,000 hours in 2020 or under specific collective bargaining agreements. A 50% increase in benefit accrual rates was applied to these years, and eligible employees can determine their eligibility based on their hours worked(Southwest Carpenters Pe…).

What role does the Southwest Carpenters Administrative Office play in assisting employees who have questions regarding modifiability in their pension plans, and what are the best methods for contacting them for assistance? This question highlights the importance of communication within the organization concerning employee inquiries and issue resolution.

The Southwest Carpenters Administrative Office assists employees with questions regarding modifications to their pension plans. Participants can contact them at (213) 386-8590 or (800) 293-1370 for personalized assistance(Southwest Carpenters Pe…).

Can you detail the factors influencing the Benefit Accrual Rate for participants of the Southwest Carpenters Pension Plan for the calendar years after 2021, and how might employees calculate their expected pension benefits? Participants will want to understand the nuances of how their benefits are computed to make informed decisions regarding their retirement planning.

The Benefit Accrual Rate for participants of the Southwest Carpenters Pension Plan after 2021 increased to $200 for 1,800 hours worked, with higher accrual rates for additional hours. Employees can calculate their benefits by multiplying their benefit accrual rate by the applicable benefit factor(Southwest Carpenters Pe…).

In the event of legal actions regarding benefits under ERISA against the Southwest Carpenters Pension Plan, what venue restrictions apply, and what does this mean for participants seeking resolution in disputes? Employees need to be informed of the legal frameworks governing their benefits and understand their rights and the procedures that affect their claims within the Southwest Carpenters Pension Plan.

Legal actions regarding benefits under ERISA against the Southwest Carpenters Pension Plan must be filed in Federal District Court in Los Angeles County, California. This venue restriction defines the jurisdiction where participants must file claims(Southwest Carpenters Pe…).