Roth Conversion Ladder Planner
Optimize yearly conversions to minimize your lifetime tax bill.
Part-time work, rental income, etc.
Total Tax on Conversions
$0
Annual Conversion Amount
$0
over 0 years
Tax Savings vs No Conversion
$0
Conversion Schedule
Year-by-Year Plan
| Year | Age | Convert | Tax Owed | Trad Bal | Roth Bal |
|---|
5-Year Rule Reminder
Roth conversions have a 5-year seasoning period. Each conversion must wait 5 years before you can withdraw the converted amount penalty-free (if under 59.5). Plan your ladder to start conversions at least 5 years before you need the funds.
What is a Roth Conversion Ladder?
A Roth conversion ladder is a tax strategy where you systematically convert Traditional IRA/401(k) funds to a Roth IRA over several years, carefully controlling the amount each year to stay within a target tax bracket. This is especially powerful for early retirees who have a "gap" between retirement and Social Security/RMD age.
Why Convert?
- Tax arbitrage: Convert during low-income years (early retirement) to pay less tax than you would later when RMDs force distributions
- No RMDs: Roth IRAs have no required minimum distributions, giving you more control
- Tax-free growth: Once in Roth, all future growth and withdrawals are tax-free
- Estate planning: Roth IRAs pass to heirs tax-free
The 5-Year Rule
Each Roth conversion has its own 5-year clock. You can withdraw the converted principal penalty-free after 5 years (or after age 59.5, whichever comes first). This is why it's called a "ladder" — you start conversions 5+ years before you need access.