Everyday numbers, solved
Plan your Roth conversion ladder for early retirement. See conversion schedule and when funds become accessible.
Money
Plan Roth conversions from your 401k for penalty-free early retirement withdrawals.
Total converted by retirement
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Each converted amount becomes withdrawable penalty-free 5 years after conversion. Tax estimate assumes a 12% effective rate; your actual bracket may differ. Consult a tax professional.
How it works
Quick answer: Converting $40,000 a year from a $500,000 401(k) for 10 years moves $400,000 into a Roth IRA, with roughly $48,000 of tax at a 12% rate. Each conversion can be withdrawn without the 10% penalty after five tax years, so a 2026 conversion is available from January 1, 2031.
Total converted = yearly conversion × years
Estimated tax = total converted × 12%
Each conversion is withdrawable without the 10% penalty 5 tax years after the conversion yearThe remaining 401(k) grows at the rate you enter, minus the amounts converted each year.
$500,000 balance, $40,000 a year, 10 years, 7% growth. Converted $400,000; tax estimate $48,000; 401(k) left after 10 years $430,918.
| Yearly conversion | Total converted | Tax at 12% | 401(k) left | Open |
|---|---|---|---|---|
| $20,000 | $200,000 | $24,000 | $707,247 | Open |
| $30,000 | $300,000 | $36,000 | $569,082 | Open |
| $40,000 | $400,000 | $48,000 | $430,918 | Open |
| $50,000 | $500,000 | $60,000 | $292,753 | Open |
| $60,000 | $600,000 | $72,000 | $154,589 | Open |
You convert 401k funds to Roth each year; each conversion becomes withdrawable penalty-free after 5 years.
Yes, conversions count as taxable income in the year you convert.
Each conversion has its own 5-year clock starting January 1 of the conversion year. Converted amounts withdrawn earlier, before age 59½, can owe a 10% additional tax.