# Retirement Tax Trap for Couples

> Couples retiring at 62 with $650,000 in IRAs and a pension face rising IRS tax withdrawals by 80.
- Title: Retirement Tax Trap for Couples · 24/7 Wall St. | Shortify
- Summary: Couples retiring at 62 with $650,000 in IRAs and a pension face rising IRS tax withdrawals by 80. A couple retiring at 62 with $650,000 between two IRAs and…
- Keywords: ira, required minimum distributions, pension, tax, retirement, social security, fidelity, transamerica, irs, rmd, Trap, Couples
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/10/20/a-couple-who-retires-at-62-with-650000-between-two-iras-and-a-48000-pension-will-meet-about-42000-of-rmds-at-73-and-the-rmd-keeps-growing-from-there-closer-to-57000-a-year-by-80
- Author: David Beren
- Published: 2026-10-20T13:48:07+00:00
- Read time: 1 min
- Topics: ira, required minimum distributions, pension, tax, retirement, social security, fidelity, transamerica, irs, rmd
## Retirement Savings Setup
A married couple stops working at 62 with $650,000 split between two traditional IRAs and a $48,000 annual pension.
## First RMD at Age 73
The first required minimum distribution is about $41,952 at age 73.
## RMD Growth by Age 80
By age 80, required minimum distributions climb to about $57,209, a 36% increase from the first RMD.
## Comparison to Typical Retirees
This couple's savings exceed the median retirement balance of $270,000 for Baby Boomers.
## IRA Growth Over 11 Years
With 5% annual growth, the couple's IRA balance reaches $1.11 million by age 72.
## Tax Implications
The couple faces tax rates up to 22% as RMDs push income toward higher brackets.
## Tax Planning Options
Couples can use Roth conversions, charitable distributions, or timing strategies to reduce tax impact.
## Long-Term Tax Impact
RMDs grow alongside IRA balances, increasing tax burden for couples with high savings.
## Key takeaway

A couple retiring at 62 with $650,000 between two IRAs and a $48,000 pension will face required minimum distributions that grow from $42,000 at 73 to $57,000 by 80.