Hoping someone who’s been there can confirm i’m good to go with this grease (sharpie) mark.
I have 5mm of polished axle showing.

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I’ve only done this once on my own runner so no expert here. I’d say it looks spot on. Good job.

Wasn’t sure if I had pressed retainer on too far.

Well you were close. Another mm and I'd say too far.

Also, it's been a while and I think I've seen it setup like yours before but I remember the tone ring being more outboard. I specifically remember eyeballing mine when I did mine for the first time and saw that the outboard part of the tone ring was even with the ending of the lug threads. I also remember space between the tone ring and the inboard retainer.

My understanding is that the inboard retainer and ABS tone ring are pressed on together which would keep them tightly together once on the shaft.
The bearing and seals were original to the truck and when I pulled the axle to do this job the inboard retainer and tone ring were positioned exactly like I have them in the above pictures, up tight against each other.
Just not sure if I pushed the retainer & tone ring on too far based on the markings during the “sharpie test”.

Finished up seal/bearing replacement, just need to bleed brakes tomorrow.
Decided grease test on first axle indicated I was within safety zone after I flipped inboard retainer and pressed it in same position as factory had it (5mm of polished axle showing).
When I did the second axle I flipped inboard retainer and pressed it with 4mm polished axle showing. Grease test indicated seal was riding dead Center on the retainer.
1st pic below is how the factory had the inboard retainer, 5mm of polished axle.
2nd pic below is once I flipped retainer and pressed on 4mm.
3rd pic is after grease test which confirmed 4mm of polished axle was the perfect positioning.
On both axles I switched the position of the original retainers instead of purchasing new ones and was able to use my original ABS tone rings as well.
Hoping this info may help someone else in the future.

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nice work. nice clean placement of sharpie

3mm would have gotten you to the center but you are close enough to call it quits. Did you use the oem seals? That is a must.

Thanks for further confirmation.
Went with OEM parts all the way, seals, retainers, bearings, lock rings, and large o-rings.
It’s nice to have dry rear brake shoes and an effective braking system.......for now!

Just be careful putting the axles in make sure you don’t tear the seal you have the retainer on backwards the beveled edge should face into the housing other than that it shouldn’t be an issue.

The measurements from the end of the polished axle area to the retainer isn't an exact thing because it depends where you take the measurement from. On one side of the retainer your measurement could show 4mm and then on the other side of the retainer it might show 5mm because the end of the polished area isn't perfectly square if that makes sense. The important thing is you confirm you have a good mating of the seal and inner retainer by performing a grease or sharpie test. What I've learned from doing this job over a dozen times on people's rigs is 5mm of polished axle gets you in the ballpark and is usually fairly spot on, but like I said, it does depend where you took that measurement from.

The reason why 5mm of polished axle showing is usually about right is the original orientation of the inner retainer was with 5mm of polished axle showing. The new seal design puts the lip of the axle seal approximately 2mm more inboard. With the retainer flipped, bevel facing the ABS tone ring, you don't first have to push past the bevel to get up onto the 10mm polished shoulder of the retainer. So, because you don't first have to push past the bevel, you essentially gained back the 2mm difference of the new seal design and that's why you can put the inner retainer onto the axle in the flipped orientation in pretty much the same spot on the axle that the original retainer was in when the vehicle was made.

Hope this made sense to Y'all.

Update 08/24/20 - After pulling axles from jobs I've done and seeing where the seal made it's witness mark on the inner retainer, I now believe 4mm of polished axle showing above the retainer is a better initial measure to start with to get the seal riding dead center on the retainer's polished shoulder. But again, definitely make sharpie marks on the inner retainer, bolt it back up to the axle housing, spin it a bunch of times, pull it out and verify you have a good mating of the seal and inner retainer.

Um, no. Not to beat a dead horse, but review this thread. You are new here so we will give you a pass.

A possible solution to leaking axle seals - Toyota 4Runner Forum - Largest 4Runner Forum