‘Convert $100,000 a Year to Get Them to the Top of the 22%’: The Roth Plan for a Couple With $2.3M in 401(k)s

Jeremy Phillips

Sat, May 2, 2026 astatine 9:00 AM CDT 5 min read

The medicine from the hosts of Your Money, Your Wealth, occurrence 579, is direct: "I would person $100,000 a twelvemonth oregon a small spot much to get them to the apical of the 22%. And I would bash that for a fewer years."

They person excessively overmuch wealth successful tax-deferred accounts and not capable years near to hole it earlier required minimum distributions onshore similar a freight train. I've been studying Roth conversion mechanics for a decade, and erstwhile I spot a mates with this overmuch pretax wealth and a constrictive runway earlier Social Security, I cognize precisely what the playbook looks like. This is the textbook setup for utilizing a low-income model to shrink a pretax heap connected your ain terms.

The strategy works, the mathematics is sound, and if you person a seven-figure 401(k) equilibrium and a fewer quiescent income years betwixt status and Social Security, you should tally the aforesaid play I'd run.

The Couple Behind the Question

Todd is 54. Margo is 53. Empty nesters who divided clip betwixt a vale location and a upland home, some paid successful full. Margo retired successful 2024. Todd plans to discontinue successful 2026.

Their equilibrium expanse tells the story:

1. $2,300,000 successful 401(k)s, the pretax heap that drives the full conversion problem.

2. $1,100,000 successful a taxable brokerage account, which becomes the span that pays the conversion taxation bill.

3. $800,000 successful a defined publication program (DCP) with a 10-year yearly payout, a deferred-comp statement that drips income retired steadily.

4. $500,000 successful Roths already, positive $150,000 successful an HSA.

5. 3 rental properties with $1,000,000 full equity and $1,500 per period successful currency flow.

Social Security arrives Margo astatine 67, Todd astatine 70, combined yearly payment of $105,000. They privation $200,000 pretax successful status spending.

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