Build your ladder
Total you plan to convert over time.
Conversions are taxed as ordinary income in the conversion year.
Earned income, pension, dividends, and similar. Stacks with conversions.
Used to size your 5-year bridge fund.
Standard deduction is subtracted before tax is calculated.
Your conversion ladder plan
| Year | Age | Converted | Est. federal tax | Effective rate | Available penalty-free |
|---|
Tax estimates use the verified 2026 federal income tax brackets and standard deductions (single $16,100; married filing jointly $32,200; head of household $24,150). State income taxes are excluded. This is an estimate for planning only, not tax advice. Converted amounts are assumed to come from accounts that still grow; this model does not compound the remaining balance.
How a Roth conversion ladder works
A Roth conversion ladder is one of the most popular ways early retirees unlock retirement money before age 59 and a half. Each year after you retire, you convert an amount from your traditional IRA or 401(k) into a Roth IRA. You pay ordinary income tax on the conversion in that year, which is why converting in low-income early retirement years is so powerful.
Each conversion starts its own 5-year seasoning clock. The clock starts on January 1 of the conversion year, and the converted principal becomes available to withdraw penalty-free on January 1 of the fifth year after conversion. A conversion done in 2026, even in December, unlocks on January 1, 2031.
The catch is the bridge period: the first five years of retirement need funding from somewhere else, typically a taxable brokerage account, direct Roth IRA contributions (withdrawable anytime), or cash. This calculator sizes that bridge fund for you.
Frequently asked questions
How does the 5-year rule work for each conversion?
Every conversion starts its own independent 5-year clock beginning January 1 of the conversion year. You can withdraw that converted principal penalty-free starting January 1 of the fifth calendar year after conversion. A December 2026 conversion unlocks January 1, 2031. This calculator lists the exact unlock date for every rung of your ladder.
Why convert during early retirement years?
Early retirement years usually have the lowest taxable income of your life, which means conversions can fill the 10% and 12% brackets cheaply. By the time required minimum distributions start, your traditional balance is smaller, which reduces future RMDs and lifetime tax. The ladder converts low-bracket room into tax-free withdrawals later.
What funds the first 5 years before rungs unlock?
The first five years are called the bridge period. Common bridge sources are a taxable brokerage account, direct Roth IRA contributions (not conversions, which can be withdrawn anytime), cash reserves, or 72(t) SEPP distributions. This calculator multiplies your annual spending need by 5 to show the bridge fund target.
Do I pay state taxes on Roth conversions?
In most states, yes, conversions are taxed as ordinary income at your marginal state rate. This calculator estimates federal tax only. Nine states have no income tax at all, so where you live in early retirement can change the math materially. Check your state rules before locking in a plan.
What if I convert too much in one year?
Converting more than the 12% or 22% bracket can push income into higher brackets, raise Medicare IRMAA premiums, and increase taxation of Social Security benefits. Most planners size annual conversions to fill a target bracket and stop. Our calculator shows the effective rate for each year so you can spot bracket creep.
Can I change my conversion amounts later?
Yes, and that flexibility is a major advantage of the ladder over alternatives like 72(t) SEPP distributions, which lock you in. You can raise, lower, or skip conversions in any year based on actual income, market conditions, or tax law changes. This plan is a starting blueprint, not a contract.
Guides
Compare the ladder against SEPP withdrawals for early retirement income.
The expensive errors I see early retirees make with conversion ladders.
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