Ideally, I’m hoping to use a Roth conversion ladder in early retirement around the age of 50. I understand that you need 5 years of expenses saved up before you can touch the conversions.

    Since I max by 401k & Roth contributions, I will likely hit my goal retirement number well before I will have 5 years of expenses saved up in a taxable brokerage account. I simply don’t make enough to be able to max my retirement contributions & save enough in my taxable on top of that.

    I understand that Roth contributions can be withdrawn penalty-free. By the time I hit my goal retirement number, I’ll likely have about a year and a half of expenses in Roth contributions. Being able to supplement with these withdrawn contributions and decreasing the amount I need to save in my taxable brokerage by 30% would be a huge help.

    Question is, is this generally a bad idea? Should I instead do everything I can to let that Roth money continue to grow tax-free for later on and just figure something else? Or is this something that’s viewed as being acceptable and not harmful down the line?

    Using Roth contributions as part of bridge funds during the start of Roth Conversion Ladder
    byu/SausageExplosion infinancialindependence



    Posted by SausageExplosion

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