Roth Conversion Ladder Calculator
Plan a Roth conversion ladder, seeing the tax on each year of conversions and the total across the plan.
Want to understand the concept, not just the number? Read The Social Security and Early Withdrawals Guide .
How it's calculated
A Roth conversion ladder is a way to move money from a traditional account to a Roth over several years, and it is a favorite tool for early retirees. You convert a chunk each year, pay income tax on it now, and after five years each converted amount can be withdrawn penalty-free, even before age 59.5. Spreading the conversions out keeps you from jumping into a high bracket in any single year.
The tax on each conversion is the extra income tax it adds on top of your other income. Take the default. With 50,000 dollars of other income, converting 30,000 dollars pushes you from the 12 percent band into the 22 percent band, and the conversion adds about 6,560 dollars of tax that year, an effective rate of about 21.9 percent on the converted amount. Do that for five years and you convert 150,000 dollars and pay about 32,800 dollars in total tax, all while keeping your top bracket at 22 percent.
The art is in the size of each conversion. Convert too little and it takes many years, and you may leave low brackets unused. Convert too much and you spill into a higher bracket, paying more than you need to. The sweet spot is usually to fill up to the top of a target bracket each year. Try different annual amounts here to see the tax and the bracket you reach, then set a pace that fits your plan.
Assumptions
- Each year the conversion is added on top of your other income and taxed at the resulting brackets. The tax is the difference with and without the conversion.
- Assumes the same income and conversion each year and uses the 2026 brackets. Each converted amount is accessible penalty-free five years after its conversion.
Last updated: 2026-08-08 · Tax year 2026
These assumptions follow our general methodology.
Frequently asked questions
What is a Roth conversion ladder?
It is a strategy of converting a set amount from a traditional account to a Roth each year. After five years, each converted amount can be withdrawn without penalty, even before 59.5, which makes it popular for funding early retirement while managing taxes.
How much should I convert each year?
A common approach is to convert just enough to fill up your current tax bracket without spilling into the next one. That keeps the tax rate on the conversion low. This calculator shows the tax and the top bracket you reach for any annual amount.
When can I access the converted money?
Five years after each conversion, the converted principal can be withdrawn penalty-free regardless of your age. Because each year is on its own five-year clock, retirees often start the ladder five years before they need the money.
Is a Roth conversion worth the tax now?
It can be if you expect to be in the same or a higher bracket later, or you want tax-free growth and no future required distributions. Paying tax at a low rate during low-income years, like early retirement, is often the best time to convert.