A large traditional 401(k) can grow substantially before required minimum distributions begin, creating a high-income “tax cascade” when withdrawals start. For people affected by SECURE 2.0, required minimum distribution ages extend to 73 or 75 depending on birth year, creating a limited window to drain the account on planned terms. If a balance grows to about $4.85 million by age 73, the first required withdrawal can be around $183,000 and increase over time. That ordinary income can push taxpayers into higher brackets, make more Social Security taxable, and trigger IRMAA Medicare premium surcharges. A proposed approach uses bracket filling by converting or withdrawing amounts that fit within available tax brackets during the drawdown window.
"The strategy is bracket filling. The 2026 schedule keeps the 22% bracket open up to $105,700 for single filers and $211,400 for joint filers, courtesy of inflation indexing under the One Big Beautiful Bill Act. Converting $80,000 per year for 17 years at"
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