If you have retirement savings in several accounts … most people do … you may want to liquidate your taxable accounts first. Examples of taxable investments are stocks, mutual funds, CDs, bank savings accounts. Why taxable first? Because tax-deferred savings (like your employer-sponsored plan) can compound and grow free of income tax. Let’s say you have $100,000 saved in taxable stocks and $100,000 in your employer’s plan. Every year when tax time rolls around, you’ll owe income tax on your stock earnings, but not a penny on your employer-plan earnings. While Uncle Sam is chipping away at your stock’s earning power, your tax-deferred plan is chugging along with much more accumulation potential.