Roth Conversion Ladder
The #1 FIRE tax strategy. Convert traditional IRA funds to Roth over 5 years — each "rung" becomes penalty-free after the 5-year seasoning period.
Your Situation
Total Tax Paid
On conversions
Tax Saved
vs no ladder
Bridge Fund Needed
Taxable accounts
Conversion Ladder
Each rung converts IRA to Roth. After 5 years of "seasoning," that rung is accessible penalty-free.
| Year | Age | Convert | Tax | Available | Status |
|---|---|---|---|---|---|
| 2026 | 40 | $48K | $4K | 2031 | 5-yr seasoning |
| 2027 | 41 | $48K | $4K | 2032 | 5-yr seasoning |
| 2028 | 42 | $48K | $4K | 2033 | 5-yr seasoning |
| 2029 | 43 | $48K | $4K | 2034 | 5-yr seasoning |
| 2030 | 44 | $48K | $4K | 2035 | 5-yr seasoning |
| 2031 | 45 | $48K | $4K | 2036 | Accessible |
| 2032 | 46 | $9K | $0 | 2037 | Accessible |
How the Ladder Works
Convert $X from Traditional IRA to Roth IRA each year before retiring (pay income tax now)
Each conversion "seasons" for 5 years — it cannot be withdrawn penalty-free before then
Meanwhile, live off your bridge fund (taxable accounts, cash) during the seasoning period
After year 5, withdraw from the first rung penalty-free — and repeat each year thereafter
Not financial advice. Tax calculations are estimates based on 2025 IRS brackets. Tax law changes frequently. Consult a CPA before making Roth conversion or tax planning decisions. Terms · Methodology