Quick ReadConverting $120,000 annually for five years moves roughly $600,000 into a Roth IRA by age 60, each tranche unlocking penalty-free after its five-year seasoning period. Keep $150,000 to $200,000 inside the employer 401(k) for Rule of 55 access. Two retirees, same $1 million, same 4% rule, buy one finished with $1.4 million, the other hit $0 in 12 years. For 2026, the married-filing-jointly standard deduction is $32,200, and the 12% bracket runs up to $100,800 of taxable income. Stacked together, that means roughly $133,000 of a traditional 401(k) can be converted to a Roth IRA in a single year at an average federal rate under 10%.