Glossary Term

Roth Conversion Ladder

Staged Roth Conversion

A Roth conversion ladder is a strategy of converting traditional retirement funds to Roth in planned annual increments to manage the tax impact over multiple years rather than all at once.

In Plain English

Instead of converting a huge pre-tax balance to Roth in one shot and taking a massive tax hit, you convert it in smaller pieces spread across several years.

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