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Retiring at 61 With a $55,000 Pension Can Trigger a 22% Bracket at 73

Original: Retire at 61 With $480,000 in a 401(k) and a $55,000 Pension, Leave the Account Alone for 12 Years, and the First Required Withdrawal at 73 Pushes the Return Into the 22% Bracket

A personal finance analysis outlines a retirement scenario: leaving a job at 61 with $480,000 in a 401(k) and a $55,000 annual pension, then leaving the account untouched for 12 years. Required minimum distributions beginning at 73 are then added on top of the pension income, pushing the retiree into the 22% federal tax bracket. The example highlights how deferring 401(k) withdrawals can create a larger, lumpier tax bill later in retirement.

Why now: Retirees are weighing whether to convert or withdraw earlier to avoid a higher bracket from required minimum distributions.

401(k)IRSrequired minimum distributions

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Evidence

• Retire at 61 With $480,000 in a 401(k) and a $55,000 Pension, Leave the Account Alone for 12 Years, and the First Required Withdrawal at 73 Pushes the Return Into the 22% Bracket · 24/7 Wall St.

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