Roth Conversion Ladder Calculator

Frequently Asked Questions

How much should I convert each year?

Convert up to the top of your target federal bracket each year, considering other income sources and the IRMAA MAGI thresholds. Common targets are the top of the 22% bracket ($94,300 for singles, 2026) or 24% bracket ($201,050 for singles). Prioritize staying below IRMAA tier 1 if you are within 2 years of Medicare eligibility.

Does a Roth conversion count as income?

Yes. The converted amount is added to your taxable income in the conversion year and taxed at ordinary income rates. It also increases MAGI for IRMAA purposes for Medicare premiums two years later.

Can I undo a Roth conversion?

No. The TCJA of 2017 eliminated Roth conversion recharacterization (undoing a conversion). Once converted, it is permanent. Make sure your conversion amount is well-planned before executing.

Is it too late to convert at age 70 or 72?

No. Even a few years of conversions before RMDs begin can meaningfully reduce the traditional balance and future RMD amounts. Each year of conversion in a low-income window before 73 is valuable.

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Important Disclaimer: Estimates for informational purposes only.

This calculator provides estimates for informational purposes only. Results are based on assumptions and may not reflect actual outcomes. Consult qualified professionals in relevant fields before making important decisions based on these results.

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How This Calculator Works

A Roth ladder is a multi-year plan to convert your traditional IRA or 401(k) balance to Roth in controlled annual amounts, targeting specific tax brackets. This calculator takes your traditional balance, age, years until RMDs begin (age 73), target tax bracket, other income (Social Security, part-time work, investment income), and filing status, then computes the optimal annual conversion amount that fills your target bracket without crossing into the next tier.

Annual conversion space = top of bracket income − other income − standard deduction. Converting up to this amount each year in your pre-RMD window is the core of the strategy. The calculator projects the total conversions over the ladder period, the remaining traditional balance, and the cumulative tax cost.

Why Convert Before Age 73

The primary motivation for Roth conversions before 73 is to reduce the traditional balance that will eventually be subject to mandatory RMDs. The window between retirement (often 60-65) and the RMD start age (73) typically offers the lowest income years of a retiree's life. Social Security has not started, earned income has stopped, and the portfolio is still largely intact. This creates a bracket-filling opportunity that may not recur.

Each dollar converted to Roth before 73 is a dollar that: (1) generates no future RMD, (2) grows tax-free indefinitely, (3) does not count in IRMAA MAGI when distributed, and (4) passes to heirs tax-free. The compounded benefit of these four advantages over a 20-30 year retirement can be substantial.

Bracket and IRMAA Cliff Management

The 22% and 24% federal brackets are generally the widest, covering a large income range at relatively modest rates. Converting to the top of the 22% or 24% bracket is a common strategy. The 32% bracket begins at $197,301 for singles (2026) - crossing that boundary has a high marginal cost.

Equally important are IRMAA Medicare surcharge cliffs. Your MAGI two years prior determines Medicare Part B and D premiums. If you are 71 and converting, the conversion income will affect 2026+2 = 2028 Medicare premiums. IRMAA tier 1 starts at approximately $106,000 (single). Converting just below each tier boundary - rather than just below the tax bracket boundary - often saves more in total.

The Five-Year Rule for Roth Conversions

Each Roth conversion has its own five-year clock. To withdraw the converted principal tax- and penalty-free, the conversion must have occurred at least five years before the withdrawal. This rule is separate from the five-year rule governing earnings on original Roth contributions.

For early retirees doing a Roth ladder for early access (before age 59½), the five-year rule is critical: you must start converting at least five years before you need to withdraw the converted dollars. This is why the strategy is called a "ladder" - you convert in year 1, wait five years, and access year-1 conversions in year 6; convert again in year 2, access in year 7, and so on.

State Tax Considerations and Timing

High-income-tax states: If you live in a state with high income taxes (California, New York), Roth conversions in your current state may be much more expensive than in a lower-tax or no-income-tax state. If retirement relocation is planned, doing conversions after the move saves significantly.

Zero-percent LTCG harvesting: In the same year you convert Roth, you may also be able to harvest long-term capital gains at 0% if total income stays below the LTCG threshold (~$94,050 joint, 2026).

QCDs coordinate well: If you are over 70½ and charitably inclined, using QCDs for RMDs leaves more room for Roth conversions in the same year without stacking income.

Tax laws change frequently. Verify current limits at IRS.gov and consult a qualified financial advisor before making retirement decisions.

Roth Conversion Ladder Calculator

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