Mastering the Roth Conversion Ladder for Early Retirement

By converting retirement funds gradually into a Roth IRA, investors can create a penalty-free income stream before age 60. karen roach/ShutterstockWhile the traditional retirement age of 65 is a social construct born from the 1935 Social Security Act, the IRS withdrawal age of 59½ is a cold, legal reality. As such, the primary challenge facing today’s pioneers who wish to retire early or take a midlife “mini-retirement” is not just accruing wealth. It’s more about accessing it without incurring early withdrawal penalties of 10 percent or more.Essentially, if you lock your net worth in a Traditional 401(k) or IRA, you are staring at your future through reinforced glass. Despite being able to see your money, you’re not allowed to touch it for decades.