Here is just a rough calculation...
Withdraw $23,900 from your 401k. This gives you $94,900 gross
Deductions for married couple is $20,000, leaving $74,900 to be taxed. (Top of 15% bracket, you might have more deductions based on your mortgage payment to be better off using itemized deductions)
Tax calculation...
Up to $18,450 taxed at 10%--> $1845
$18,451-$74,900 taxed at 15% ($74,900-$18,450)=$56,450
$56,450 at 15%--> $8,467.50
Total tax is $10,312.50
Net cash in your pocket: $84,587.50
Your WR would be close to 7% from your 401k, and you'd draw it down substantially, withdrawing $100k+ from it.
However, when you hit 62, you pull out about the same with the annuities,eliminating the need to withdraw any more at all from the 401k, thus your SWR is 0% on the remaining 401k. Even if the market tumbles 50%, you will not use up your 401k, but there won't be any left for your heirs.
I strongly suggest you meet with a financial planner to lay out your plan.
Run I-orp.com and firecalc with your plan to see what it says for tax planning and success rate. It might be better to withdraw more now because at 70.5, you'll have RMDs on top of your $95k, so your taxes will go up.
Bottom line, I think you are set to quit now!
Withdraw $23,900 from your 401k. This gives you $94,900 gross
Deductions for married couple is $20,000, leaving $74,900 to be taxed. (Top of 15% bracket, you might have more deductions based on your mortgage payment to be better off using itemized deductions)
Tax calculation...
Up to $18,450 taxed at 10%--> $1845
$18,451-$74,900 taxed at 15% ($74,900-$18,450)=$56,450
$56,450 at 15%--> $8,467.50
Total tax is $10,312.50
Net cash in your pocket: $84,587.50
Your WR would be close to 7% from your 401k, and you'd draw it down substantially, withdrawing $100k+ from it.
However, when you hit 62, you pull out about the same with the annuities,eliminating the need to withdraw any more at all from the 401k, thus your SWR is 0% on the remaining 401k. Even if the market tumbles 50%, you will not use up your 401k, but there won't be any left for your heirs.
I strongly suggest you meet with a financial planner to lay out your plan.
Run I-orp.com and firecalc with your plan to see what it says for tax planning and success rate. It might be better to withdraw more now because at 70.5, you'll have RMDs on top of your $95k, so your taxes will go up.
Bottom line, I think you are set to quit now!