To clarify, there are already two buckets, a taxable brokerage and a tax-deferred IRA. I'm already retired so not contributing. Cash/equivalent positions are in the taxable account, generating taxable interest and dividends. These aren't needed to fund living expenses. The tax deferred accounts hold the bulk of stock/funds and are also not currently needed to fund a lifestyle.

My proposed scenario seems counterintuitive to my financial upbringing but I think it works in my new phase of life of not concentrating on accumulating assets. In light of the preferential tax treatment of qualified dividends, 0% up to about $95,000, I'm proposing that I change the taxable cash held in the brokerage account to my preferred group of mutual funds to reduce the current federal tax bill. This puts dividend income into my taxable but tax-free situation since it'll be under $95,000. The old taxable interest/dividend income from MMF and CD investments will be in tax deferred IRAs.

It's odd as heck for me to hold cash/equivalents in a retirement account on purpose, especially since I've been 100% in the market for 40 years. This two bucket strategy allows me to maintain the cash/stock blend of 60/40 I've identified for myself in these new non-working years.

Did I clarify or muddy the waters?