Am I understanding Roth Conversion Ladders + Roths????

[JustTrying]

My spouse and I have been throwing a lot of money at our 401ks/403bs. We're now at the point that if we can't touch that money till we're 59.5, we should probably stop contributing, as it will grow and be quite a large sum by the time we reach 59.5 (20+ years from now).

My understanding, however, is that I can do a Roth conversion from the 401k/403b, and once converted to Roth, I can use it prior to retirement age with no penalties because the $$ once converted is considered a Roth contribution. (I'd do a conversion ladder over time).

Unfortunately, I'm not too confident about the second statement. It's all a little fuzzy to me.

3 questions:
1) Should I assume I won't be able to access the 401k/403b money until 59.5, and therefore stop contributing to those accounts?
2) Do you have any recommendations on books/articles I can read to get a better grasp/understanding on how Roth conversion ladders work?
3) Even if I AM correct that the $$ from the 401k/403b could be converted to Roth and then used prior to retirement age, is there a risk that the tax laws could change that I should be factoring into my decision-making?

Thanks so much for any/all advice. I'm really confused here!

[terran]

You're close. The conversion has to sit in the Roth for 5 years, at which point it can be withdrawn without penalty. This is why its called a ladder. Similar to a CD ladder, you convert every year, and then after 5 years you have another year of conversion "maturing" every year that you can remove. For this reason you need 5 years worth of spending (including the tax on conversions) available in Roth contributions and taxable accounts to get the Roth conversion ladder going.

You might find https://www.madfientist.com/how-to-access-retirement-funds-early/ helpful in understanding it better.

[RWD]

1) No

2) Reading material:
https://www.madfientist.com/how-to-access-retirement-funds-early/
https://forum.mrmoneymustache.com/investor-alley/how-to-withdraw-funds-from-your-ira-and-401k-without-penalty-before-age-59-5/
https://www.mrmoneymustache.com/2011/11/11/how-much-is-too-much-in-your-401k/

3) Yes, tax laws could change but there are still several alternatives to the Roth conversion ladder if that particular method goes away. For example, SEPP 72(t) or just even just paying the 10% penalty for early withdrawal. See the reading material above.

[JustTrying]

Thanks for your responses! Thanks for the simple explanation about the 5 year wait! I will look into the recommended articles/posts. Good thing I now know I can keep putting money in the tax-advantaged accounts, and then I'll have several years to keep reading and learning to understand the ladder! :)