Another thing is if you're within the income limits to start a Roth IRA (if you haven't already done so). Basically, you can put money into your Roth 401K at work, then when you leave work transfer your Roth 401K money to your Roth IRA and have no tax hit for the transfer (unlike a conversion from traditional/tax deferred retirement money to Roth post-tax money). That money can be withdrawn penalty free only if your Roth IRA is at least 5 years old (really 5 January 1st's years old since the 5th year is satisfied on January 1st of that year).
Keep in mind that each conversion has its own 5 year rule. For example, when my wife retired a couple of years ago and I converted part of her 401K into her Roth IRA, that amount of money is counted as conversions in year 2020, thus can't be withdrawn penalty free until year 2025. Between now and then we can withdraw the contributions portion of her Roth IRA because her Roth IRA is over 5 years old. But we can't withdraw the conversion portion until year 2025. If we do another conversion between now and then we can't withdraw that amount until 5 years after whenever we did that conversion. Only after all of the conversion money is done doesn't it count as withdrawing earnings, which has the 59.5 years old rule (which you already satisfy).
I'm basically spelling out what in IRS jargon is referred to as the Order of Distibution Rules for Roth IRA's.
The last time I was near Tampa I visited the vacation homes of Henry Ford and Thomas Edison, including the lab Edison discovered that rubber can be extracted from goldenrod plants (so we wouldn't have to import as much rubber from Cuba in case we wound up in another world war, which we did).
That is part of my advice to my 25 year old son, regarding Roth IRAs. I wish I had put more into them.
I gave him the spark by giving him $500 to research and pick how own stocks, when he was 17. He now owns a portfolio of 23 stocks and 3 mutual funds.
I missed out on Roth’s because our 401K didn’t have that option for many years. We were both getting matched up to 5%, so no resources to go that route. I need to come up with a plan for Roth Conversions, that doesn’t drive me into an upper tax bracket.