# The $900,000 401(k) Decision at 62

> A 62-year-old retiree with $900,000 in a pretax 401(k) could be burning through the cheapest years to get money out.
- Title: The $900,000 401(k) Decision at 62 · 24/7 Wall St. | Shortify
- Summary: A 62-year-old retiree with $900,000 in a pretax 401(k) could be burning through the cheapest years to get money out. Leaving a $900,000 pretax 401(k)…
- Keywords: 401k, pretax, retiree, tax bills, social security, medicare, roth conversion, required minimum distributions, federal tax, pretax 401(k), 900, 000
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/10/18/the-900000-401k-decision-at-62-that-can-change-a-retirees-tax-bills-all-the-way-to-80
- Author: Gerelyn Terzo
- Published: 2026-10-18T22:00:46+00:00
- Read time: 1 min
- Topics: 401k, pretax, retiree, tax bills, social security, medicare, roth conversion, required minimum distributions, federal tax, pretax 401(k)
## The $900,000 401(k) Decision
Leaving a $900,000 pretax 401(k) untouched at 62 can feel like smart tax planning but may be the most expensive decision a retiree never realizes they made.
## Tax Bill Impact
The retiree may burn through the cheapest years to get money out, raising tax bills all the way to 80.
## Plan A: Leave Alone
Plan A uses outside savings first and leaves the 401(k) untouched until forced withdrawals start.
## Plan B: Mix Withdrawals
Plan B mixes moderate pretax withdrawals or conversions with outside savings to tax part of the 401(k) during low-income years.
## Hidden Cost of Plan A
Once 401(k) withdrawals start alongside Social Security, extra income can make more of your benefits taxable and raise Medicare premiums.
## Roth Conversion Costs
Two costs get left out: tax paid on each conversion and growth that tax money would have earned if it stayed invested.
## Stress Tests
Lower future tax rates, shorter retirement, lost healthcare subsidies, and large conversion bills can flip the answer.
## Timing Matters
Required minimum distributions start at 75 for people born in 1960 or later, giving this retiree over a decade before withdrawals become mandatory.
## Key takeaway

Leaving a $900,000 pretax 401(k) untouched at 62 may raise tax bills by 80.