Roth Conversion Ladder FIRE 2027 Calculator
Build a Roth conversion ladder 2027 — convert Traditional IRA/401k to Roth in zero-bracket years, wait 5 years, withdraw penalty-free pre-59½. Key FIRE strategy.
Roth Conversion Ladder Defined
Convert Traditional IRA/401k to Roth IRA in low-income years (post-FIRE). Each conversion has its own 5-year clock. After 5 years, withdraw the converted amount (not earnings) tax/penalty-free.
Why This Works
Traditional balance is income when you withdraw. Without income (post-FIRE), low tax bracket. Convert up to standard deduction = $0 federal tax. Then wait 5 years. Repeat annually.
Bridge to Age 59½
Standard 401k/IRA: 10% penalty before 59½. Roth IRA contributions: penalty-free anytime. Conversion: penalty-free after 5 years (regardless of age).
Cash Bridge Strategy
Years 1-5 of FIRE: need cash/Roth contributions to live on while waiting for first conversion to age out. Plan with 5-year cash buffer.
Source: irs.gov Roth conversion rules, mrmoneymustache.com Roth Pipeline. Last updated: May 2026.
Frequently Asked Questions
What if I have brokerage account?
Use taxable brokerage for first 5 years. Long-term cap gains rate 0-15% (most FIRE earners stay in 0% bracket). Then start Roth ladder withdrawals.
Pro-rata rule applies?
Only if doing backdoor Roth and have pre-tax IRA. Conversion ladder = move from Traditional to Roth — already pre-tax, all taxable. No pro-rata issue.
State tax?
State tax applies to conversions in most states. Some states no income tax (TX, FL, WA). Some retire to no-tax state THEN convert.