How Much Can a 62-Year-Old Couple With $2.3 Million in Their 401(k) Save With Roth Conversions?

4 hours ago 2

Danielle Liverance

Sat, June 20, 2026 astatine 10:13 AM CDT 5 min read

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Al Clopine recommends filling the 22% bracket by default, but converting into the 24% bracket during marketplace drops of 15 to 20 percent successful bid to maximize tax-free betterment growth.
The mates has astir $150,000 of yearly conversion room, which is capable to displacement betwixt $1 cardinal and $1.2 cardinal retired of their 401(k) implicit a decennary earlier RMDs deed astatine 75.
Clopine warns that yearly spending is the captious unknown. A mates burning $400,000 a twelvemonth would drain the 401(k) naturally, making Roth conversions pointless.
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On a caller occurrence of Your Money Your Wealth, certified nationalist accountant Al Clopine gave a 62-year-old California listener a Roth conversion playbook astir retirees ne'er hear: "Convert to the apical of the 22%. But person successful the 24% bracket during down years. Be opportunistic. The marketplace volition retrieve portion it's successful a Roth and you get much bang for your buck."

A smiling Black mates sits astatine a woody table, engaged successful fiscal planning. The pistillate connected the left, successful a yellowish shirt, holds a pen and notebook. The antheral connected the right, successful an orangish shirt, holds papers, with a laptop and eyeglasses connected the table. Both are looking astatine each different and smiling, indicating a affirmative discussion. A vase with flowers is successful the background.

The listener and his 61-year-old woman clasp $2.3 cardinal successful a 401(k) and $1.2 cardinal successful a brokerage relationship earmarked for the taxation bill. They gully a $55,000 authorities pension with COLA positive astir $40,000 successful dividends and rental income, and program to hold Social Security until 70, erstwhile combined benefits volition scope astir $75,000. His question: halt astatine the apical of 22% to dodge IRMAA, oregon propulsion into 24%?

The verdict: capable the 22% bracket, past interruption the regularisation erstwhile stocks driblet

Clopine and co-host Joe Anderson agreed the default reply is the apical of the 22% bracket. Anderson enactment the stakes plainly: if the listener does nothing, required minimum distributions starting astatine 75 volition apt propulsion him into the 24% bracket anyway, truthful "if helium doesn't convert, he'll beryllium successful the 24%" regardless.

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Most Americans drastically underestimate however overmuch they request to discontinue and overestimate however prepared they are. But information shows that people with 1 habit person much than treble the savings of those who don't.

For 2026, the modular deduction for joined filing jointly is $32,200, and the 22% bracket for associated filers runs to $211,400 of taxable income. Clopine walked the math: "Dividend and rental income, $40,000. Pension, $55,000. Subtract retired modular deduction of $32,000. I get taxable income of $63,000." That gives the mates astir $140,000, telephone it $150,000 of further conversion country earlier crossing into 24%. Anderson estimated converting that magnitude for a decennary moves $1,000,000 to $1,200,000 retired of the 401(k).

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