I understand the typical recommendation is to first draw down from the taxable account, and then from pretax retirement accounts, due to capital gain rate being lower than the income tax rate.
My question is, for someone who is planning to do Roth conversion of the pretax 401k asset, wouldn't it make sense to first draw down from the 401k because doing Roth conversion and drawing down 401k assets to use for expenses would have the same tax implication of paying income tax, this will also lower RMD in the future.
In addition, if the 401k asset is sufficient to cover expenses, it would seem to make sense to leave the taxable account asset to children to take advantage of the step up basis rule.
Am I missing something in this line of thinking?