This is a simple command line calculator to calculate Roth Ladder Conversions.
You input a series of balances (Traditional, Roth, Brokerage, and Crypto) into appsetting.config and the app calculates balances over time.
This differs from normal online calculators in that it is intended to help plan for early-retirement. To achieve this, we use a technique known as a "Roth Ladder Conversion".
- Roth yearly conversion maximum is unlimited. Not to be confused with the contribution maximum of $7,500/y (2023)
- For large conversions to work, you must have already amassed a large "Traditional" balance. i.e. Traditional 401K, IRA, 403b. to convert into Roth.
- Roth distributions do not count as income (So you many take advantage of cheap healthcare via ACA subsidies)
- To achieve 12% tax rate, your income (normal income, and ladder conversions) must be meet the following criteria, or be subjexct to 22% rates.
- Single: $44,725 (Default)
- Married filing jointly: $89,450
- Roth contributions may be withdrawn at any point after 5 years without penalty. Gains may not be withdrawn until 59 1/2
Take the number of years from now until a traditional retirement (59 1/2 +) and divide it in two. If you convert some amount from Traditional => Roth for the first half, and take the distributions for those same amounts 5 years later, you will be able to tap retirement funds before you are 59 1/2, while keeping healthcare costs minimized.
This calculator takes the above assumptions into account, and tries to simulate a "complete" scenario using the "5 years until retirement" roth ladder strategy.
- Age: 39 (Default)
- Early-Retire: 45 (Default)
- Traditional Retire: 67 (Default)
- Traditional: $1,000,000 (Default)
- Roth: $0 (Default)
