Roth Conversion Ladder Calculator
Pre-pay taxes in low-income years to access IRA money before 59½ — see year-by-year tax owed and seasoned balances.
A Roth conversion ladder lets you access traditional IRA money before age 59½ without the 10% early withdrawal penalty. You convert small amounts each year from traditional to Roth IRA, paying income tax at your current (lower) rate. After a 5-year seasoning period, each conversion can be withdrawn penalty-free. This strategy is especially powerful in early retirement years when your income is low and you can fill the lower tax brackets cheaply.
Converting $25,000/yr for 15 years starting at age 55: total tax = $15,000 on $375,000 converted. First seasoned withdrawals available at age 60. Final Roth balance: $628,226.
Fill the 12% bracket: ~$47K single, ~$94K married
Part-time work, dividends, rental income
Conversion summary
Total tax paid
$15,000
Over 15 years
Total converted
$375,000
75% of original
Final Roth
$628,226
Tax-free growth
Final Traditional
$751,290
Remaining pre-tax
Year-by-year conversion schedule
| Year | Age | Convert | Tax | Trad | Roth |
|---|---|---|---|---|---|
| 2026 | 55 | $25,000 | $1,000 | $510,000 | $25,000 |
| 2027 | 56 | $25,000 | $1,000 | $520,700 | $51,750 |
| 2028 | 57 | $25,000 | $1,000 | $532,149 | $80,373 |
| 2029 | 58 | $25,000 | $1,000 | $544,399 | $110,999 |
| 2030 | 59 | $25,000 | $1,000 | $557,507 | $143,768 |
| 2031 | 60 | $25,000 | $1,000 | $571,533 | $178,832 |
| 2032 | 61 | $25,000 | $1,000 | $586,540 | $216,351 |
| 2033 | 62 | $25,000 | $1,000 | $602,598 | $256,495 |
| 2034 | 63 | $25,000 | $1,000 | $619,780 | $299,450 |
| 2035 | 64 | $25,000 | $1,000 | $638,164 | $345,411 |
| 2036 | 65 | $25,000 | $1,000 | $657,836 | $394,590 |
| 2037 | 66 | $25,000 | $1,000 | $678,885 | $447,211 |
| 2038 | 67 | $25,000 | $1,000 | $701,406 | $503,516 |
| 2039 | 68 | $25,000 | $1,000 | $725,505 | $563,762 |
| 2040 | 69 | $25,000 | $1,000 | $751,290 | $628,226 |
How to use this calculator
Current age — Your age when you start the conversion ladder. Many FIRE retirees begin in their early-to-mid 50s when they have low taxable income.
Traditional IRA balance — The total amount in your pre-tax retirement accounts (Traditional IRA, 401k rolled over to IRA, SEP-IRA). This is the pool you'll convert from.
Annual conversion amount — How much to convert each year. The optimal amount typically fills the 0% and 12% tax brackets. For 2024, that's up to ~$47K taxable income (single) or ~$94K (married) after the standard deduction.
Other taxable income — Any other income you receive (part-time work, rental income, dividends). This affects your tax bracket and how much conversion room you have before hitting higher rates.
Expected growth rate — Annual return on both traditional and Roth balances. 7% is a common real-returns assumption for a stock-heavy portfolio.
Real-world examples
Early retiree, 52, filling the 12% bracket
$500K in Traditional IRA, converting $30K/yr with $0 other income. Taxable income = $30K - $15K deduction = $15K → all in the 10–12% brackets. Tax owed: ~$1,600/yr. After 5 years, seasoned withdrawals begin at age 57, providing penalty-free income until 59½.
Barista FIRE, 55, with part-time income
$400K Traditional IRA, converting $20K/yr with $25K part-time income. Total taxable = $45K - $15K = $30K → still in 12% bracket. Tax: ~$3,200/yr. The ladder supplements part-time income starting at age 60.
Full conversion over 10 years
$300K Traditional IRA, converting $30K/yr. Total tax over 10 years: ~$16K. All money moves to Roth where it grows tax-free forever — no Required Minimum Distributions (RMDs) on Roth.
Formula & Methodology
Taxable income per year
- Conversion = Amount converted from Traditional to Roth
- Other Income = Wages, dividends, rental income, etc.
- Standard Deduction = $15,000 (2024 single) or $30,000 (married)
5-year seasoning rule
Each conversion has its own 5-year clock. The first conversion's clock starts January 1 of the year you convert. After 5 years, that conversion amount (plus growth) can be withdrawn penalty-free, even before 59½.
Assumptions & limitations
- Uses 2024 federal tax brackets for single filers. State taxes are not included.
- Standard deduction of $15,000 (single). Married filers get $30,000 — your effective tax rate will be lower.
- Does not model RMDs (Required Minimum Distributions) starting at age 73, which may force larger conversions later.
- Assumes constant conversion amount and growth rate each year. In practice, you may adjust annually.
- Roth earnings cannot be withdrawn penalty-free before 59½ — only converted principal (after seasoning).
- This is not tax advice. Consult a CPA for your specific situation.
Frequently asked questions
What is the 5-year rule for Roth conversions?
Each Roth conversion has a 5-year seasoning period before it can be withdrawn penalty-free. The clock starts January 1 of the year you make the conversion. After 5 years, you can withdraw that conversion amount (but not its earnings) without the 10% early withdrawal penalty, regardless of your age.
How much should I convert each year?
The optimal strategy is to fill the 0% and 12% tax brackets each year. For a single filer in 2024, that means up to ~$47K in taxable income after deductions. Going into the 22% bracket costs significantly more per dollar converted.
Can I do a Roth conversion while working?
Yes, but it's less advantageous because your marginal tax rate is likely higher. The strategy shines in early retirement when you have little or no earned income and can convert at low tax rates.
What about the pro-rata rule?
The pro-rata rule applies when you have both pre-tax and after-tax money in traditional IRAs. If you have any non-deductible IRA contributions, a portion of each conversion will be tax-free based on the ratio of after-tax to total IRA balance. This calculator assumes all traditional IRA money is pre-tax.
Do I need to worry about RMDs?
Traditional IRAs require RMDs starting at age 73. Roth IRAs have no RMDs for the original owner. Converting to Roth eliminates future RMDs, which is a key benefit — especially if you don't need the money and want it to continue compounding tax-free.