# A 64-Year-Old Couple's Tax Decision

> A couple with $1.2 million in a 401(k) faces a tax decision before retirement.
- Title: A 64-Year-Old Couple's Tax Decision · 24/7 Wall St. | Shortify
- Summary: A couple with $1.2 million in a 401(k) faces a tax decision before retirement. A 64-year-old couple with $1.2 million in a pretax 401(k) may face higher…
- Keywords: 401k, tax, roth conversion, social security, medicare, retirement planning, irr, 64-Year-Old, Couple's, Decision, 24/7 Wall St.
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/10/17/a-64-year-old-couple-has-1-2-million-in-a-401k-but-their-biggest-tax-decision-may-come-before-they-touch-it
- Author: Gerelyn Terzo
- Published: 2026-10-17T16:19:04+00:00
- Read time: 1 min
- Topics: 401k, tax, roth conversion, social security, medicare, retirement planning, irr
## The Couple's Savings
A 64-year-old couple has $1.2 million in a pretax 401(k) savings.
## Tax Impact of Waiting
Leaving the 401(k) untouched could lead to higher taxes when required withdrawals start.
## RMD Date Change
Under IRS Notice 2026-13, RMDs start at age 75 for those who turn 74 after December 31, 2032.
## Tax Cascade Risk
401(k) withdrawals can increase Social Security taxes and Medicare premiums.
## Plan A: No Conversion
Plan A leaves the 401(k) untouched until RMDs begin and uses cash for living costs.
## Plan B: Roth Conversions
Plan B converts a limited piece to a Roth IRA each year during the gap to avoid higher taxes.
## Tax Comparison Needed
A tax preparer should model both plans to see which has lower taxes over time.
## Deadline for Action
Roth conversions must be completed by December 31 to use the current tax year's low-income room.
## The Tax Decision
The couple must decide how much tax they will pay on their $1.2 million before touching it.
## Key takeaway

A 64-year-old couple with $1.2 million in a pretax 401(k) may face higher taxes if they wait to convert to Roth IRA.