The Roth Conversion Ladder: Why Physicians Earning $380K Are Quietly Moving Money Backward to Retire Forward
here is a peculiar arithmetic to the Roth conversion ladder that most financial advisors gloss over — not because it's complicated, but because it requires patience that contradicts their business model. The strategy asks you to pay taxes now, deliberately, on money you've already sheltered, so that a decade from now, your withdrawals arrive tax-free at precisely the moment your marginal rate matters most.
For the physician earning $380,000 in attending salary who plans to step back at 52, the math resolves cleanly: five years of conversions, beginning the year after your last W-2, moving $60,000–$80,000 annually from traditional IRA to Roth while your income sits in the 22% bracket. The window is narrow. The savings are not.
"The window between your last paycheck and RMD age is not a gap — it is the most valuable financial real estate you will ever own."
— Compound, Issue 47
Subscribers received the full analysis, including a worked example for a married couple filing jointly.