From 24/7 Wall St. · Jake FitzGerald · · 1m 10s
Tax-Free Retirement Plan for Couples
Retirees can withdraw $60,000 yearly from 401(k) tax-free until Social Security starts at 70.
In brief
Retirees can withdraw $60,000 yearly from 401(k) tax-free until Social Security starts at 70. Retirees under 70 can take $60,000 yearly from 401(k) without federal tax until Social Security begins at 70. Originally reported by 24/7 Wall St..
Tax-Free Retirement Window
Retirees under 70 can take $60,000 yearly from 401(k) without federal tax until Social Security starts at 70.
How the Plan Works
Retirees pull $47,500 from 401(k) and $12,500 from taxable brokerage accounts to stay tax-free.
Tax Deductions in 2026
Joint filers get $32,200 standard deduction plus $1,650 per partner for senior deduction.
Tax-Free Threshold
Long-term gains taxed at 0% until taxable income reaches $98,900 for joint filers.
Tax Impact After Social Security
Social Security benefits become taxable once combined income exceeds $44,000.
Roth Conversions
This window is the cheapest time to run Roth conversions for tax savings.
Who Should Skip
Retirees with pensions, large taxable interest, or early Social Security claims face higher taxes.
Senior Deduction Deadline
Senior deduction only applies to tax years before January 1, 2029.
What matters most
Retirees under 70 can take $60,000 yearly from 401(k) without federal tax until Social Security begins at 70.
