Are Roth Conversion Ladders the Best Way to Retire Early?

Are Roth Conversion Ladders the Best Way to Retire Early?

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[genxretiree]

I did a full conversion of my IRA at 47 because I have a ton of after tax assets. We ran it through Right Capital so much I think the software is tired. Now combined Roth and spouse's traditional IRA are equal and the after tax bucket is 5x those other two buckets. Also don't withhold on the conversion if you're pre 59.5 or you'll get the penalty since the IRS sees that withholding as a distribution. I'm also getting ahead of IRMAA and will use APTC's since I'll be on exchange for years (at least while we still have APTC's for health insurance).

[rene.s.s]

Agree with Brian, doesn’t make sense at end of employment. Wait until you retire early. Live off brokerage account and minimal savings at 0% taxes in early retirement and convert like mad from 55-65 or whatever you range is.

[rayanderson]

Does the 5-year rule for conversions disappear when you turn 59.5? I heard both ways.

[eskim]

I would think tapping into the converted Roth assets would be a “break glass in an emergency” option. Nice to know you have it but not part of the happy path early retirement scenario or strategy to dip into that.

[Pjeski]

Wow, the model of the cyber truck is just as hideous as the real cyber truck. Didn’t really think about the conversions I have been doing over the last 5 years as a ladder. I was just looking for a way to get low cost ACÁ insurance till I get to 65 years old.

[ladylove]

So, at 4:47, he says living on after tax assets. What would be examples of these? I'm trying to figure out what are after tax assets at 45 years old.

[kevinschultz]

In this specific example (wanting access at age 55), it's more effective to just leave it in your 401k; you can access it at age 55, if it's in a live 401k account. (ie, not in your IRA.)

[ZuneTrades]

My understanding is you can convert Ira funds to Roth and withdraw those as contributions tax and penalty free immediately. No need to wait 5 years. Per IRS Publication 590-B under “Ordering rules for distribution”. No age limit.

Why do you guys say one must wait 5 years from each conversion before withdrawing tax and penalty free?

[ididntdoit]

Can you also convert a 457b to a roth in this manner?

[rene.s.s]

Should I fill my 22% bracket at 40 because brackets should go up in 2 years and even more likely to go up in 15 years?

[Bagsn]

Could you review project 2025 and what that would mean for your retirement

[pavlidesgeorge]

REMEMBER WHAT ONE ACHIEVE OR NOT IT ALL COMES TO PASS, AND TOMORROW NOT PROMISED TO MOST

[pavlidesgeorge]

PRAYING YOU TWO GET SAVED PLEASE PRAY FOR ME +

[pavlidesgeorge]

ON YOUTUBE LADDER OF THE GREAT ASSENT BY SAINT JOHN CLIMAX +

[pavlidesgeorge]

ON YOUTUBE PASTOR BOB JOYCE GIVES GOOD SERMON AKA ELVIS PRESLEY