401(k) Withdrawals Keep Couples in 12% Tax Bracket Until Age 70

Wealthy couples are retiring at 62 and using their 401(k) to fund their lifestyle until 70, keeping joint taxable income below $100,800 to remain in the 12% tax bracket. They can withdraw roughly $133,000 annually, giving an effective federal tax rate near 8%. Delaying Social Security benefits increases monthly income to about $6,200 starting at age 70. This strategy can provide tax efficiency and sustained income, making it significant for tax planning in retirement.