High-Net-Worth Couples Tap 401(k)s Until 70 to Lift Social Security 24%
Updated
Updated · en.koreadaily.com · Jun 23
High-Net-Worth Couples Tap 401(k)s Until 70 to Lift Social Security 24%
2 articles · Updated · en.koreadaily.com · Jun 23
Summary
$3,300 monthly benefits at age 67 can rise to $4,092 at 70 for each spouse, pushing a couple’s combined payout to $8,184 by delaying claims.
That delay works with a five-year window from ages 65 to 70, when retirees can draw down traditional 401(k)s or convert to Roth accounts before Social Security income starts.
For a couple with $2.5 million, moving or spending $650,000 early can cut the balance used for required minimum distributions at 73 by about 26%, lowering taxes later in retirement.
The strategy still carries a key risk: Medicare IRMAA surcharges begin for joint filers above $218,000 in modified adjusted gross income, and large withdrawals can raise premiums two years later.
Advisers are pitching the approach as a way to boost survivor income and lifetime payouts, though it demands careful timing to avoid tax and Medicare missteps.