Retirees Prioritize 401(k) Drawdowns to Maximize Social Security Benefits at 70
A 64-year-old couple with $1.4 million in a 401(k) is spending down their retirement account first while delaying Social Security claims until age 70. This strategy leverages low tax brackets between ages 64 and 70 for Roth conversions and maximizes the final Social Security benefit, which increases by 8% annually after full retirement age. Delaying benefits ensures a larger survivor benefit and avoids high marginal tax rates triggered by required minimum distributions later in life.