"At 73, the IRS Uniform Lifetime Table assigns a distribution period factor of 26.5. On a $1.5 million 401(k), that produces a first-year required minimum distribution of roughly $56,600. Add $30,000 in annual Social Security income, and total household income reaches approximately $86,600."
"When one spouse dies, the survivor inherits the same 401(k) balance, RMD schedule, and Social Security benefit. Filing status changes to single, starting the year after the spouse's death, and that one change reshapes the entire tax picture."
"The 2026 standard deduction for single filers is $16,100, compared to $32,200 for married filing jointly. The same $82,100 in gross taxable income, now reduced by only $16,100, leaves roughly $66,000 in taxable income."
A married couple with a $1.5 million 401(k) faces manageable taxes until one spouse dies. The survivor inherits the same assets but files as single, leading to a higher tax burden. The required minimum distribution (RMD) for a 73-year-old couple is about $56,600, combined with $30,000 in Social Security, resulting in a total income of $86,600. After deductions, the survivor's taxable income increases significantly, raising their federal tax bill from approximately $5,500 to $9,200, creating a $3,700 annual difference.
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