Are Roth Conversion Ladders the Best Way to Retire Early?
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- čas přidán 6. 09. 2024
- Are Roth Conversion Ladders the Best Way to Retire Early?
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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).
Does the 5-year rule for conversions disappear when you turn 59.5? I heard both ways.
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.
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.
Thank you☀️☀️☀️
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.)
Need to verify that your company's 401k plan allows the rule of 55. Not all do.
THANKS FOR INFO
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?
That's what I did, back when Roth conversions opened up. I'm in the 32% bracket now, so I'm "just" maxing out my mega-backdoor Roth instead (plus standard backdoor Roth.)
Can you also convert a 457b to a roth in this manner?
yes, I do a roth conversion every year on my 457b.
Could you review project 2025 and what that would mean for your retirement
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