Roth Conversion Ladder Calculator

A multi-year strategy where you convert traditional IRA/401(k) money to Roth in measured annual chunks, filling specific tax brackets without overflow into higher ones. Each conversion is taxable as ordinary income in the year done, but future growth and withdrawals are tax-free. Done across "gap years" (early retirement, pre-RMD) at lower brackets, it shifts your tax burden to favorable years and reduces future RMD shock.

Each Roth conversion starts a separate 5-year clock. If you withdraw the CONVERTED principal before 5 years have passed AND you are under 59½, you owe a 10% penalty on that withdrawal. After age 59½, the 5-year rule no longer matters for principal. The 5-year rule for EARNINGS in a Roth IRA (qualified distribution) is separate - both age 59½ AND any 5-year period from the first Roth contribution.

No - unlike Roth IRA CONTRIBUTIONS (which phase out at high incomes), there is no income limit on Roth conversions. Anyone can convert any amount in any year. This is what makes the ladder strategy accessible to high earners who otherwise cannot contribute directly to a Roth IRA.

Best fit: early retirees with low taxable income in their 60s before Social Security and RMDs begin; expected higher future tax brackets; substantial traditional balances; charitable inclinations are already maxed; legacy goals. Worst fit: short remaining lifetime, already in low bracket forever, planning to donate IRA to charity at death (use QCDs instead), state with high income tax planning to move to no-tax state later.