Your FIRE Plan Needs a Roth IRA Conversion Ladder

Lucas and Luna break down the Roth IRA conversion ladder—a strategy that lets early retirees access retirement funds penalty-free before age 59.5. They walk through the mechanics, the five-year waiting rule, and the tax implications using a concrete example: a couple with a $40,000 annual spend and a $1 million traditional IRA. They also discuss the 2026 tax landscape, including the expiration of the Tax Cuts and Jobs Act provisions, and how to model conversion amounts to stay in the 12% bracket. Plus, they touch on common pitfalls like the pro-rata rule and state taxes. If you're pursuing financial independence and want to avoid the 10% early withdrawal penalty, this episode offers a practical roadmap. #RothIRALadder #FIRE #EarlyRetirement #TaxStrategy #FinancialIndependence #RetirementPlanning #IRARollover #TaxBracket #SequenceOfReturns #WithdrawalStrategy #PersonalFinance #Investing #Finance #FIREPodcast #FexingoBusiness #BusinessPodcast #TaxCutsAndJobsAct #ProRataRule Keep every episode free: buymeacoffee.com/fexingo