I-orp question

[Gail]

I'm pretty sure this is a dumb question on my part, but here goes.

I ran our figures through the calculator at i-orp.com and I'm not sure I understand the results. The recommendation seems to be that we pull out of our tax deferred accounts almost twice what we would actually need and invest the extra in an after tax account. The result is that we would be paying a lot more tax up front, but almost no tax on the back end.

If I project a larger return on our portfolio, then the calculator recommends that we pull out only what we need, and no funds ever go into our after tax account.

Am I reading this correctly? I know that this calculator is supposed to tell me that most tax efficient way to take withdrawals, but I'm not sure I understand this.

 

[d]

pull out of our tax deferred accounts almost twice what we would actually need and invest the extra in an after tax account

i'm guessing that this is, at least in part, to satisfy the minimum distribution requirement.