Retirees With $1.4 Million Draw $60,000 at 62 to Avoid $100,000 RMDs at 73
Updated
Updated · 24/7 Wall St. · Sep 11
Retirees With $1.4 Million Draw $60,000 at 62 to Avoid $100,000 RMDs at 73
1 articles · Updated · 24/7 Wall St. · Sep 11
Summary
$60,000 annual withdrawals starting at 62 can keep a married couple with $1.4 million in a traditional 401(k) inside the 12% tax bracket before Social Security begins.
Leaving the account untouched until SECURE 2.0 RMDs start at 73 could grow it to roughly $2.7 million to $2.9 million, producing a first forced withdrawal near $100,000.
That larger RMD would stack with Social Security, bond interest and dividends, potentially pushing the couple into the 22% bracket and making up to 85% of Social Security taxable.
Medicare costs can rise too: crossing IRMAA thresholds adds about $70 to $400 or more per person each month, based on a two-year income lookback.
The report says retirees should map unused 12% bracket room from 62 to 72 and pair needed withdrawals with Roth conversions, especially before age 63 affects Medicare premiums at 65.