Bridge to 59½ Calculator
A couple retires at 50 on $80,000 a year. They hold $600,000 in a taxable account, $1,200,000 pre-tax and $100,000 in a Roth. There are two ways to reach 59½. Spend the taxable account while a Roth conversion ladder matures behind it. That costs about $37,105 of federal tax over ten years, with marketplace income over the 400% line in 5 of them. Or run a 72(t) on the IRA: on $1,200,000 it pays $72,375 a year and the taxable account covers the rest, for $43,250 of tax and 1 year over the line. Enter your own accounts and the table shows every year.
Rules and tables checked against the IRS sources on September 2, 2026. Corrections log.
The three strategies on the same couple
| Strategy | Federal tax, ten years | Years over the 400% line | Taxable runs out at | Pre-tax at 60 | Roth at 60 |
|---|---|---|---|---|---|
| Taxable first, then a Roth ladder | $37,105 | 5 | lasts | $1,251,773 | $315,049 |
| 72(t) on a carved-off IRA | $43,250 | 1 | lasts | $998,837 | $162,889 |
| Blend: 72(t) for half, ladder for the rest | $39,192 | 5 | lasts | $1,019,697 | $250,930 |
Age 50, married filing jointly, household of two, $80,000 spending rising 2.5% a year, 5% returns, 60% cost basis in the taxable account, 2026 federal tables held level, no state tax. The 72(t) uses fixed amortization at 5% on the Single Life Table.
Where each strategy gets its money
Taxable first, then a Roth ladder. Spending comes from cash, then the taxable account, and the gains realized there are taxed at the long-term rate. Meanwhile each year's conversion from the IRA to the Roth is sized to what the year five years ahead will need. Converted principal can be taken without the 10% additional tax once five tax years have passed. The rungs start paying out in year six and take over from the taxable account, which becomes the buffer.
72(t) on a carved-off IRA. Split the IRA. Size one piece so the fixed amortization payment covers spending after other income, and take that payment every year until 59½. The payment is exact, level and locked. It does not rise with inflation, so the gap it leaves grows each year and the other accounts fill it. The 72(t) calculator shows the payment on its own.
The blend. A smaller 72(t) covers the fixed part of spending, and a smaller ladder covers the rest. Two locks, each half as heavy.
The ladder's timing problem
This is the part that breaks plans, and it is not the tax. A conversion made this year is not spendable until five tax years have passed. So the ladder has to be built five years before it is needed, out of income you are taxed on now, while the taxable account carries the whole of spending. If the taxable account is too small to last five years, the ladder is not ready when it is needed. The table above marks any year the model has to take IRA money early and pay the 10%. That row is the plan failing. The fix is a longer runway of taxable money, a smaller spend, or a 72(t) for the base.
The marketplace line runs through every year
For a household of two, the premium tax credit for 2026 coverage ends at $84,600 of marketplace income. A Roth conversion is income in the year it is made. A 72(t) payment is income. Realized gains are income. The ladder strategy front-loads conversions into the years the taxable account is also throwing off gains, which is exactly how a plan lands over the line. Tick the box to cap conversions under it and see what that does to the rungs. Cost-sharing reductions stop earlier, at $52,875.
What this model does not do
- Returns are steady. A bad first three years hits the taxable account, which is the runway. Test a lower return.
- One filer's age sets the tax additions. A spouse over 65 in the bridge years would raise the deduction slightly.
- The cost-basis share is held fixed. In practice you sell high-basis lots first and the share falls later.
- No Social Security, no state tax, no Roth earnings. Earnings in the Roth are not drawn before 59½; only converted principal and contributions are.
- Tax law is held at 2026. Brackets are indexed, so a ten-year plan in today's brackets is slightly pessimistic.
Before you pick one, answer three questions
How many years can the taxable account carry the whole of spending, after tax on the gains? That number decides whether a ladder can be built in time. Is any part of spending fixed enough to lock for the whole bridge? That part is the case for a 72(t). And does health insurance come from the marketplace? If so, the 400% line, not the tax bracket, is the ceiling that matters, and both strategies have to be run against it.
Two other pages carry the next decision. The Roth conversion calculator prices one year's conversion in full, including the Social Security and senior-deduction effects after 62. The RMD calculator shows what the pre-tax balance you leave behind must pay out at 73.
Frequently asked questions
How does a Roth conversion ladder work?
You convert money from a traditional IRA to a Roth and pay tax on it in the year of the conversion. Five tax years later the converted principal can be withdrawn without the 10% additional tax, even before 59½. Converting every year builds a ladder of rungs that come due one after another.
Roth conversion ladder or 72(t)?
A ladder keeps every year flexible but needs five years of other money before the first rung pays out, and each rung is taxed when converted. A 72(t) pays from the first year and needs no runway, but the payment is fixed and locked until 59½. The table above runs both on your numbers.
How much should I convert each year for a ladder?
What you will need five years from now beyond your other income, adjusted for the spending growth you expect. Convert more only if you have the tax room and want to shrink future required distributions.
Can I do a 72(t) and a Roth ladder at the same time?
Yes, from different accounts. The 72(t) account cannot be added to, converted from or drawn from beyond its payment, so split the IRA first and run the ladder from the other piece.
Does a Roth conversion ladder affect ACA subsidies?
Yes. Each conversion is income in the year it is made, and for 2026 coverage the premium tax credit ends at 400% of the poverty line. The calculator can cap conversions to stay under it.
What if my taxable account runs out before the ladder is ready?
Then the model takes IRA money early and charges the 10% additional tax, and it marks that year. The fixes are a longer runway of taxable money, lower spending in the first years, or a 72(t) for the base of your spending.
Related calculators
SavingsLast calculators are educational estimates. They assume a constant average return and steady inflation; real markets are volatile and sequence-of-returns risk can shorten how long money lasts. Nothing here is financial, investment, tax, or legal advice. Consult a qualified professional before making decisions.
Printed from https://savingslast.com/retire-early-bridge-calculator/ on . The figures reflect the inputs shown and the rules as published on that date.