How the Roth IRA Conversion Ladder Works in 2026

Episode 54 of The Tax Strategy Podcast breaks down the Roth IRA conversion ladder — a strategy for moving pre-tax retirement savings into a Roth account over multiple years to minimize taxes. Lucas and Luna explain the five-year rule, how to avoid the 10% early distribution penalty, and what the 2026 tax brackets mean for your conversion timing. They walk through a real example: a 45-year-old earning $120,000 who converts $30,000 per year and ends up paying less total tax than a lump-sum conversion. The episode also covers the pro-rata rule for mixing IRAs and the potential impact of future tax rate changes. Listeners learn exactly how to execute the ladder and whether it makes sense for their own retirement timeline. #RothIRAConversion #RetirementPlanning #TaxLadder #TaxStrategy #PersonalFinance #Investing #IRA #FiveYearRule #ProRataRule #TaxBrackets #2026Taxes #EarlyWithdrawal #PenaltyFree #FinancialIndependence #FIRE #FexingoBusiness #BusinessPodcast #TaxTips Keep every episode free: buymeacoffee.com/fexingo