Roth Conversion Ladder

Schedule penalty-free Roth access with the 5-year rule.

Covers: roth, conversion, ladder, early retirement, 5-year rule, 590-b.

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How this works

A Roth conversion ladder moves money from a traditional account to a Roth a slice at a time. Each converted amount can be withdrawn penalty-free five years after the conversion (the IRS 5-year rule for conversions), so a steady yearly conversion builds a steady yearly stream of penalty-free money, a common way to bridge spending before age 59½.

We lay out the schedule: what you convert each year, the year it becomes accessible, and the conversion tax estimated at the rate you enter (each conversion is taxable income that year). Converting in a low-income year keeps that tax down. This is a starting plan, not advice: confirm the rules for your accounts with the IRS or a qualified professional.

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