Before Your First RMD at 73, Make Sure Your $1.4 Million 401(k) Isn’t Costing You $52,000 in Taxes
A seven-figure 401(k) sounds like security until the IRS forces a withdrawal that triggers a tax cascade most retirees never see coming, and one overlooked move before age 73 could change the entire outcome.
Quick take
Read original at Yahoo Finance A $1.4 million 401(k) can trigger a $52,830 required minimum distribution at 73, facing a 40% effective marginal rate with Social Security and IRMAA surcharges. Converting $300,000 to a Roth can cut the first RMD by over $11,000. This can help retirees avoid high taxes and live comfortably on $1,600 to $2,200 per month.
Summarised by netranta from Yahoo Finance. Open the original for the full story.
Observations (0)
Log in to add an observation.
No observations yet — add the first.