Last Monday’s Reader Case sparked some discussion over whether it makes sense to take the 10% early withdrawal penalty that comes from making a 401(k)/Traditional IRA withdrawal before the age of 59.5 instead of doing the Roth Conversion Ladder. Why? Well, the counter argument referred to this very thorough and informative post from the MadFientist, who did a comparison of 5 ways of accessing your retirement funds. In that post, he claimed that in certain situations, deliberately taking the 10% Early Withdrawal Penalty actually beats the Roth Conversion Ladder strategy, which seems completely bonkers and counter-intuitive to me. So I […]

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