Getting to Roth early is never ideal, but it may be a solution that keeps the rest of your retirement plan intact and moving forward.
2. Take non-taxable withdrawals
Tax-free withdrawals from your Roth IRA are tax-free. On paper, this is an advantage when you expect your retirement tax rate to be higher than it is today. In practice, having a source of non-taxable income for retirement also has emotional benefits. You will be less affected by tax changes, the cost of living budget will be easier, and you will have the power to manage your tax account by withdrawing more or less from your taxable accounts in a given year.
You can usually start with a tax-free withdrawal of contributions and earnings from your Roth after 59 and a half years. There is an additional requirement that at least five years must have passed since your first Roth contribution.
3. There is no impact on the taxability of your social security
The IRS taxes between 0% and 85% of yours Social security benefit. Where you fall in that range depends on your “combined income” for the year. The combined income is half of your social security benefit plus other income, including the taxable distribution of pensions, salaries, interest, dividends and capital gains.