Quick Read – A $1.6 million 401(k) grows to roughly $3 million by age 73, forcing RMDs that push a married couple’s effective tax rate near 40%. – Converting $180,000 annually from age 62 to 69 costs about $274,000 in taxes versus $418,000 via RMDs, saving roughly $145,000…
fetime. – Front-load conversions before Social Security starts at 70, and always pay the tax bill from a taxable account, never from the converted funds. – A 62-year-old just retired with $1.6 million in a traditional 401(k), no pension, and plans to delay Social Security until 70. The Reddit user who asked “Roth conversions at age 62?” on r/RothIRA spotted what this reader needs to see: the largest tax bill of his life is hiding eleven years out, and the window to defuse it is already open
That window sits between retirement today and the first required minimum distribution at age 73. Used deliberately, it can shave roughly $145,000 off lifetime federal taxes on the account. Ignored, the same $1.6 million compounds into a tax problem that eats into retirement income.
Why the Bill Balloons at 73 Left untouched at a 6% compound return, $1.6 million grows to roughly $3 million by age 73. Divided by the IRS Uniform Lifetime Table factor of 26.5, that produces a first-year RMD near $115,000, rising every year after. Stack a delayed Social Security benefit around $50,000 and portfolio dividends on top, and a joint filer lands squarely inside the 24% federal bracket, which starts at $211,400 of taxable income for married couples in 2026.