Roth Conversion Ladder Calculator (Multi-Year)
Plan a multi-year Roth conversion ladder: annual conversion amounts, estimated tax, and when each conversion becomes penalty-free under the 5-year rule. Educational, not tax advice.
Often sized to fill a target tax bracket.
| Convert in | Amount | Est. tax | Penalty-free in |
|---|---|---|---|
| 2026 | $40,000 | $4,800 | 2031 |
| 2027 | $40,000 | $4,800 | 2032 |
| 2028 | $40,000 | $4,800 | 2033 |
| 2029 | $40,000 | $4,800 | 2034 |
| 2030 | $40,000 | $4,800 | 2035 |
A Roth conversion ladder converts traditional IRA/401(k) money to Roth in planned annual amounts — typically sized to “fill up” a tax bracket. Each conversion’s principal can be withdrawn penalty-free after its own 5-year clock (shown in the last column), which is why early retirees build a ladder to bridge to age 59½. You owe ordinary income tax on each conversion in the year you do it. This assumes a flat marginal rate; real brackets are graduated and stack on other income. Not financial or tax advice — consult a professional. Everything runs in your browser.
About this tool
A Roth conversion ladder is a strategy — popular with early retirees and anyone seeking tax-free retirement income — for moving money from a traditional IRA or 401(k) into a Roth IRA gradually, one tax year at a time. The appeal is twofold. First, you control the tax bill: rather than converting a large balance all at once and spiking into high brackets, you convert a measured amount each year, often sized to 'fill up' the current bracket without crossing into the next one, paying ordinary income tax on each year's conversion. Second, and the reason it is called a ladder, each conversion starts its own five-year clock; once five tax years have passed, that converted principal can be withdrawn from the Roth penalty-free even before age 59½. By converting every year, you create a series of staggered five-year clocks, so a new tranche becomes accessible each year — a way to bridge income in early retirement before traditional retirement-account access begins. This calculator lays out the schedule: for each conversion year it shows the amount, the estimated tax at your marginal rate, and the calendar year that tranche becomes penalty-free (conversion year plus five). It uses a single flat marginal rate for clarity, but real tax brackets are graduated and your conversion stacks on top of your other ordinary income, so the actual tax can span several brackets — model conservatively and revisit annually. Conversions are also generally irreversible and can affect ACA subsidies, Medicare IRMAA, and the taxation of Social Security. This is educational and not tax or financial advice — consult a qualified professional. Everything runs in your browser; nothing is uploaded.
How to use it
- Enter the amount you plan to convert each year (often sized to fill a tax bracket).
- Set how many years the ladder runs.
- Enter your marginal tax rate on the conversions.
- Set the first conversion year.
- Read the year-by-year schedule, including when each conversion becomes penalty-free.
Frequently asked questions
- What is a Roth conversion ladder?
- A strategy of converting traditional retirement funds to a Roth IRA in planned annual amounts. Each conversion can be withdrawn penalty-free five tax years later, creating a "ladder" of accessible funds — useful for bridging income before age 59½.
- How does the 5-year rule work for conversions?
- Each conversion has its own five-year clock starting January 1 of the conversion year. After five years, that conversion's principal can be withdrawn penalty-free even before 59½. The tool shows the penalty-free year for each conversion.
- How much tax do I pay on a conversion?
- You owe ordinary income tax on the converted amount in the year of conversion. This tool applies a flat marginal rate; in reality the conversion stacks on your other income and may span multiple graduated brackets.
- Why size conversions to a tax bracket?
- Converting just enough to reach the top of your current bracket maximizes the amount moved to Roth at a known rate without pushing into a higher bracket. This is why many ladders target a specific bracket ceiling each year.
- What else can conversions affect?
- Conversion income can raise ACA premium subsidies' cost, trigger Medicare IRMAA surcharges two years later, and increase the taxable portion of Social Security. Coordinate the ladder with these. Conversions are generally irreversible.
- Is this tax advice?
- No. It is an educational planning tool using simplified flat-rate tax. Consult a qualified tax professional before converting. Nothing is uploaded; all math runs in your browser.