Roth Conversion Ladder Simulator
Build Your Ladder
Enter your planned retirement details to model your conversion ladder and see when funds become available.
Retirement Start Age
Annual Amount to Convert
Tax Rate on Conversion (%)
Years to Simulate
Year | Age | Converted | Tax Paid | Available Now | Total Available |
|---|---|---|---|---|---|
| 1 | 45 | $50,000 | ($6,000) | $0 | $0 |
| 2 | 46 | $50,000 | ($6,000) | $0 | $0 |
| 3 | 47 | $50,000 | ($6,000) | $0 | $0 |
| 4 | 48 | $50,000 | ($6,000) | $0 | $0 |
| 5 | 49 | $50,000 | ($6,000) | $0 | $0 |
| 6 | 50 | $50,000 | ($6,000) | $50,000 | $50,000 |
| 7 | 51 | $50,000 | ($6,000) | $50,000 | $100,000 |
| 8 | 52 | $50,000 | ($6,000) | $50,000 | $150,000 |
| 9 | 53 | $50,000 | ($6,000) | $50,000 | $200,000 |
| 10 | 54 | $50,000 | ($6,000) | $50,000 | $250,000 |
| 11 | 55 | $50,000 | ($6,000) | $50,000 | $300,000 |
| 12 | 56 | $50,000 | ($6,000) | $50,000 | $350,000 |
| 13 | 57 | $50,000 | ($6,000) | $50,000 | $400,000 |
| 14 | 58 | $50,000 | ($6,000) | $50,000 | $450,000 |
| 15 | 59 | $50,000 | ($6,000) | $50,000 | $500,000 |
| 16 | 60 | $50,000 | ($6,000) | $50,000 | $550,000 |
| 17 | 61 | $50,000 | ($6,000) | $50,000 | $600,000 |
| 18 | 62 | $50,000 | ($6,000) | $50,000 | $650,000 |
| 19 | 63 | $50,000 | ($6,000) | $50,000 | $700,000 |
| 20 | 64 | $50,000 | ($6,000) | $50,000 | $750,000 |
Access Your Retirement Money Early
A Roth Conversion Ladder is a strategic method for accessing pre-tax retirement funds (like your 401k) before the standard retirement age of 59.5, completely penalty-free.
Normally, withdrawing from these accounts early incurs a 10% penalty. However, IRS rules allow you to withdraw Roth conversion principal penalty-free after a 5-Year Seasoning Period. By converting a portion of your funds every year, you build a "ladder" of income that becomes available year after year.
How to Use This Calculator
Plan Your Ladder
Determine your 'Gap Years'—the time between early retirement and age 59.5. You'll need to convert enough money to cover expenses for these years.
Start Converting Early
You must start converting funds at least 5 years before you need to spend them. This is due to the IRS '5-Year Rule' for each conversion.
Pay Taxes Now, Withdraw Later
You will pay income tax on the amount you convert in the year of the conversion. 5 years later, the principal amount is available tax-free and penalty-free.
Mastering the Strategy
The Roth Ladder is powerful, but requires precise planning to avoid tax traps.
The 5-Year Rule
Crucial! The clock starts on January 1st of the year you do the conversion. Even if you convert in December, it counts as a full year.
Tax Bracket Management
Smart converters fill up their standard deduction and lower tax brackets (10%, 12%) with conversions, paying very little tax overall.
SEPP (72t) vs. Ladder
SEPP is another way to access funds early, but it's inflexible. Once started, you MUST withdraw exact amounts. A Ladder is flexible—you can stop anytime.
The 'Gap' Fund
Since the first rung of your ladder isn't ready for 5 years, you need 5 years' worth of cash or taxable brokerage savings to survive the start.
Planning Your FIRE Strategy?
The Roth Ladder is just one piece of the puzzle. Make sure your overall plan is solid.
Frequently Asked Questions
The main benefit is liquidity. It allows you to access your 401(k) or Traditional IRA money before age 59.5 without paying the 10% early withdrawal penalty. This is crucial for early retirees (FIRE) who need to bridge the gap until standard retirement age.
Yes. Each specific conversion event has its own 5-year clock. Money converted in 2024 is available in 2029. Money converted in 2025 is available in 2030. This creates a 'ladder' of available funds.
No. Since you already paid income tax when you converted the money from Traditional to Roth, the withdrawal of that principal amount is tax-free. Earnings on that principal may still be subject to rules.
Yes, there is no limit on conversion amounts. However, converting too much can push you into a higher tax bracket, which defeats the purpose of tax optimization. It's often best to convert just enough to fill up your current tax bracket.
A 72(t) SEPP allows penalty-free withdrawals immediately, but it locks you into a rigid schedule. You MUST make exact withdrawals for at least 5 years or until age 59.5, whichever is longer. If you bust the schedule, you owe retroactive penalties on ALL withdrawals. A Roth Ladder is flexible: you can convert as much or as little as you want each year, and stop anytime. The tradeoff is you must wait 5 years for the first dollar.