# 66-Year-Old Couple Builds Monthly Paycheck from $1.2M 401(k)

> Retired couple uses Treasury ladder and delayed Social Security to create $4,000 monthly income without annuity.
- Title: 66-Year-Old Couple Builds Monthly Paycheck from $1.2M 401(k)
- Summary: Retired couple uses Treasury ladder and delayed Social Security to create $4,000 monthly income without annuity.
- Keywords: treasury ladder, social security, retirement income, annuity, treasury bills, inflation index, tips, portfolio withdrawals, required minimum distributions, 24/7 Wall St.
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/11/07/how-a-66-year-old-couple-turned-a-1-2-million-401k-rollover-into-a-monthly-paycheck-without-buying-an-annuity
- Author: Jake FitzGerald
- Published: 2026-11-07T10:57:33+00:00
- Read time: 1 min
- Topics: treasury ladder, social security, retirement income, annuity, treasury bills, inflation index, tips, portfolio withdrawals, required minimum distributions
## Rollover Mistakes That Cost Money
The rollover method affects tax withholding: 20% withheld when check goes to account owner versus no tax when paid directly to IRA trustee.
## Layer One: Treasury Ladder
They use two years of withdrawals from Treasury bills and notes maturing on staggered schedules to create $4,000 monthly income.
## Layer Two: Portfolio Withdrawals
Remaining $1.104 million invested in stocks and bonds with systematic withdrawals to refill the ladder during market downturns.
## Layer Three: Delayed Social Security
Higher earner delays Social Security claims until 70 to grow benefits with cost-of-living adjustments and become surviving spouse's income.
## Taxes and Medicare Costs
Standard 2026 Part B premium is $202.90 monthly with income-related surcharges applying to joint filers over $218,000.
## Skipping Annuity Risks
Without annuity, couple bears risks of outliving money and poor markets early while avoiding insurer's claims-paying ability risks.
## Conditions to Check
Check if Social Security covers essentials, can delay claiming, withstand 25% portfolio decline, and manage withdrawals if needed.
## What Skipping Annuity Gives Up
Skipping annuity means bearing two risks: outliving money and poor markets early, while annuity is irrevocable with built-in costs.
## The Plan Works
The couple's three-layer plan creates reliable monthly income without annuity, though it carries sequence-of-returns risk and inflation pressure.

> sequence-of-returns risk
## Key takeaway

A 66-year-old couple converted $1.2 million 401(k) rollover into $4,000 monthly income through Treasury ladder and delayed Social Security without annuity.