60-Year-Olds Can Convert $66,500 From 401(k)s at 12% Rate Before RMDs at 75
Updated
Updated · Yahoo Finance · Oct 22
60-Year-Olds Can Convert $66,500 From 401(k)s at 12% Rate Before RMDs at 75
3 articles · Updated · Yahoo Finance · Oct 22
Summary
$66,500 is the maximum a single 60-year-old with no wages can move annually from a traditional 401(k) to a Roth in 2026 without entering a tax bracket above 12%.
That ceiling comes from adding the $16,100 standard deduction to the top of the single filer 12% bracket at $50,400, producing a federal tax bill of about $5,800—an effective 8.7% rate.
Social Security sharply reduces that room: the average $26,040 annual benefit leaves only about $44,366 of usable space within the 12% bracket.
Age 60 also matters because distributions after 59½ avoid the 10% early-withdrawal penalty, while people born late enough to face the newer rule do not have required minimum distributions until age 75.
That creates roughly a 15-year window between work income ending and IRS-mandated withdrawals, letting retirees choose lower conversion amounts before forced distributions can push taxable income higher.