| Course | GF550 Retirement Planning |
|---|---|
| Unit | Unit 8 |
| Paper type | Distribution strategy memo |
| Length | About 790 words, 5 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | MS in Finance |
| Updated | October 2026 |
Free sample paper for GF550 Unit 8
Paying More Tax Early to Pay Less Overall: A Unit 8 Distribution Strategy Memo for a Couple at 67
[Student Name]
Purdue University Global
GF550: Retirement Planning
Unit 8 Distribution Strategy Memo
[Instructor Name]
[Date]
The couple and every figure are composite and illustrative, computed with 2025 federal brackets held constant and a simplified model; the article and publications cited are real.
Memorandum
To: Supervising Planner From: Associate Planner Date: January 12, 2026 Re: Withdrawal order for the couple, ages 67 to 80
Recommendation
Use the bracket-filling order. It roughly triples federal income tax paid from 67 to 80, from about $57,000 to about $156,000, but it reduces the pre-tax IRA balance at 80 from about $1.25 million to about $113,000. Counting the tax still owed on those IRA balances, the couple ends at 80 about $91,000 better off after tax.
The Couple
Both are 67. They hold a taxable brokerage account of $300,000, about half of it unrealized gains; traditional IRAs of $900,000; and a Roth IRA of $150,000. They spend about $96,000 a year after tax. One spouse receives Social Security of $30,000 a year; the other will claim $42,000 a year at 70.
The Model
Each year the model withdraws enough after federal tax to fund $96,000 of spending. Accounts earn 5 percent a year. Tax uses 2025 brackets for married couples filing jointly with the standard deduction for two people over 65, the rules for taxing Social Security benefits and the 0 and 15 percent rates on long-term gains (Internal Revenue Service, 2024b). Required minimum distributions begin at 73 using the Uniform Lifetime Table (Internal Revenue Service, 2024a). The model leaves out state tax and the temporary senior deduction that runs through 2028, which would lower tax in both orders in the early years.
Order A: Conventional
Taxable account first, then IRAs, Roth last. From 67 to 72 the couple lives on Social Security and the taxable account, realizing gains mostly in the 0 percent bracket and paying almost no tax. Required distributions start at 73 at about $45,500 and rise to about $62,000 by 80, all taxable. Total federal tax from 67 to 80: about $57,000. At 80, the IRAs hold about $1.25 million, the taxable account about $323,000 and the Roth about $297,000.
Order B: Bracket-Filling
Each year, draw enough from the IRAs to lift taxable income to $96,950, where the 12 percent bracket ends, and use the taxable account only if more is needed. Surplus cash is reinvested in the taxable account. Federal tax is about $11,200 every year, $156,000 in total from 67 to 80. At 80, the IRAs hold about $113,000, the taxable account about $1.30 million and the Roth about $297,000.
The conventional order looks cheaper only because it postpones the tax: at 80 it leaves $1.25 million in pre-tax accounts that will be taxed as they are withdrawn, while bracket-filling has already paid most of that tax at 12 percent rather than 22 percent or more later.
Comparing the Outcomes
Valuing the remaining IRA balance at 78 percent of its face, as if withdrawn at a 22 percent rate, the after-tax wealth at 80 is about $1.60 million under Order A and about $1.69 million under Order B. The difference, about $91,000, would grow if one spouse dies, since the survivor files as a single taxpayer and reaches higher brackets at lower income. Research on withdrawal sequencing reaches the same conclusion: drawing from tax-deferred accounts to fill low brackets early usually extends portfolio life compared with the conventional order (Cook et al., 2015).
Medicare Premiums
Neither order raises income above the threshold, about $212,000 for joint filers in 2025, at which Medicare premium surcharges begin. In Order A, however, required distributions keep rising after 80 and could eventually approach it; Order B's small remaining IRA removes that risk.
Cautions
The comparison depends on tax law staying close to today's. If rates fell sharply in the future, Order A's postponed tax would cost less. The surplus in Order B could instead fund Roth conversions, which would likely improve it further. And the taxable account in Order B ends larger, which matters for heirs, who receive a step-up in basis on taxable assets but inherit IRAs with tax still owed.
What the Couple Will Notice
In Order B they will see a tax bill every year instead of almost none for six years, which can feel like a mistake. The memo to them should show the deferred tax figure plainly, so the early payments read as prepaying a bill they would otherwise face at a higher rate.
Next Step
Confirm the couple's state tax position and rerun the model with it, then present Order B at the March review.
References
Cook, K. A., Meyer, W., & Reichenstein, W. (2015). Tax-efficient withdrawal strategies. Financial Analysts Journal, 71(2), 16-29. https://doi.org/10.2469/faj.v71.n2.2
Internal Revenue Service. (2024a). Distributions from individual retirement arrangements (IRAs) (Publication 590-B). U.S. Department of the Treasury.
Internal Revenue Service. (2024b). Social Security and equivalent railroad retirement benefits (Publication 915). U.S. Department of the Treasury.
GF550 Unit 8 instructions, in plain terms
Unit 8 of GF550 asks for a memo recommending a withdrawal order for retired clients. Put the recommendation and its main figures first. Describe the clients' accounts, spending and benefit income. Explain the model and its simplifications: return, tax rules used, the treatment of Social Security, required distributions and what is left out. Run at least two orders year by year and report tax paid and ending balances for each. Compare them fairly by counting the tax still owed on pre-tax balances at the end. Address Medicare premium thresholds and what happens if one spouse dies. Note cautions, such as changes in tax law, and improvements like Roth conversions. Close with a next step. Cite IRS publications and research on withdrawal sequencing in APA 7.
How the GF 550 Unit 8 example is put together
The recommendation and three figures sit at the top of the sample memo. The couple's accounts and benefits are summarized, then the model section lists its tax assumptions, cites IRS Publications 915 and 590-B and names what it leaves out. Order A and Order B are described with their yearly pattern, tax totals and balances at 80. The highlighted sentence explains that the conventional order postpones tax rather than avoiding it. A comparison section values the remaining IRAs after tax, finds a gap of about $91,000 and cites Cook, Meyer and Reichenstein. A section on Medicare premiums notes neither order crosses the threshold, cautions cover tax law, Roth conversions and heirs, a short section prepares the couple for yearly tax bills, and a next step closes.
Where the points sit in the GF550 Unit 8 rubric
GF550 distribution memos are graded on whether the comparison prices taxes correctly and fairly. Graders check that the model's tax rules are stated and applied consistently and that both orders fund the same spending. The largest analytical share goes to comparing outcomes on an after-tax basis, including tax still owed on pre-tax balances, since a raw comparison of tax paid misleads. Attention to Medicare surcharge thresholds and survivor filing status shows depth. Instructors in this MS in Finance course value candor about simplifications and about conditions that would reverse the result. A recommendation first, a practical next step and APA 7 references to IRS publications and research complete the rubric.
GF550 Unit 8 help: mistakes that cost points
The most common GF550 Unit 8 error is comparing orders by tax paid during the window and declaring the order with the lowest bill the winner, ignoring the larger pre-tax balance it leaves behind. Others model required distributions incorrectly or start them at the wrong age. Social Security taxation is left out, though it changes marginal rates. Medicare premium thresholds are mentioned without being checked. Survivor filing status is ignored. Memos bury the recommendation after pages of tables. For any retired household your case describes, compare at least two orders year by year, count deferred tax at the end, check thresholds and survivor effects, and recommend clearly.
Get a GF550 Unit 8 example written to your instructions
Share the balances, spending, benefit timing and tax year from your GF550 Unit 8 case, and include the rubric. Two withdrawal orders are run year by year, the tax each triggers is priced including benefit taxation and premium effects, and the recommendation states what would weaken it. The first custom sample is complimentary, generally in 24-48h. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
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GF550 Unit 8 questions, answered
Is taxable, then tax-deferred, then Roth the standard order?
It is the conventional starting point, and it is often not the cheapest. Spending taxable money first can leave the lowest brackets empty for years and then push income higher once required distributions begin. The sample runs both orders side by side so the difference is measured rather than assumed, which is what most rubrics at this level expect you to show.
Where can I find a free GF550 Unit 8 sample paper?
This page carries a full GF550 Unit 8 distribution strategy memo comparing two withdrawal orders for a couple at 67, with tax totals, ending balances, an after-tax comparison and APA 7 references.
Why does paying more tax early leave the couple better off?
The bracket-filling order pays tax at 12 percent on IRA money that would otherwise be withdrawn later at 22 percent or more. Paying the lower rate sooner reduces the total tax on the same dollars.
Would Roth conversions improve the bracket-filling order?
Probably. In the model, IRA withdrawals beyond spending needs are reinvested in the taxable account. Converting that surplus to Roth instead would pay the same 12 percent tax but leave the money growing tax-free.
What happens to the comparison if one spouse dies?
The survivor files as a single taxpayer and reaches higher brackets at lower income. A large remaining IRA becomes more expensive to draw down, so the advantage of filling brackets early grows.