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Roth Account Balance
Old 11-11-2014, 11:17 AM   #1
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Roth Account Balance

We have funded the Roth Account since it's inception in 1998. Every year except 1 we put in the maximum allowed. The account has finally climbed above $100,000 ($64,000 contributions $36,000 earnings). This works out to about 6% IRR (Wellington Fund).

How is everyone else doing on their Roth?


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Old 11-11-2014, 11:43 AM   #2
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Started contributing and maxing out in 2005 100% stocks. Contributed $43k and balance is $80k. Was over $90k but unfortunate single stock bankruptcy dropped it by $10k this year...
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Old 11-11-2014, 11:52 AM   #3
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I contributed the maximum amount when I was w**king but have not been able to make recent contributions since I am now retired. My TIRA is about 20X the amount of my Roth. Wish that were reversed.
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Old 11-11-2014, 11:57 AM   #4
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Roth Account Balance

We had an 401K from a previous employer that rolled over to a conventional IRA. In 2006 we converted these funds into Roth by splitting the IRA's into thirds and taking the tax bite, which was painful. One of the accounts we ended up re- characterizing due to portfolio losses and then making another go at turning it into a Roth the following year.

Of course the last several years the Roth accounts have done very well by virtue of benign market conditions.

Dollar wise, the Roth accounts total out somewhere north of $400,000. A nice chunk of change although not the biggest slice of the pie.


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Old 11-11-2014, 11:59 AM   #5
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Roth Account Balance

Quote:
Originally Posted by molof View Post

Was over $90k but unfortunate single stock bankruptcy dropped it by $10k this year...

GTAT ? Sorry about that.... At least you didn't have all of it in one stock


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Old 11-11-2014, 12:02 PM   #6
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I was young and stupid and cashed mine out when I left my job in 2008. I opened a new one in 2009 and have put in $20,000 and it's now worth $29,000. Very happy with that. Thanks Wellesley.
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Old 11-11-2014, 12:09 PM   #7
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We were not eligible for Roth IRAs until 2009. We cannot even do "backdoor Roth IRAs" because of other interfering rollover IRAs. Last year, our Roth contributions were limited.

As you know March 2009 was a nice time to invest and that's when we made our first contributions to our Roth IRAs. We have not made our 2014 contributions yet. XIRR says we have made about 9% average annual return which is pretty bad given that our taxable account has made about 20% average annual return for the same time period. But the taxable account is all equities while the Roths have been a mix of equities and fixed income.
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Old 11-11-2014, 12:36 PM   #8
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like LOL!, we have essentially been shut out of Roth IRAs, and our bracket has made the Roth 401k option unattractive. Did 10K conversion for each of us to start the 408A(d)(2)(A) clocks, but that is it. Have far more in TIRA and 401k.

Currently plan to do aggressive regular conversions up to top of relevant bracket once we retire and have no other significant income, which will continue until we have a somewhat better balance among "regular," TIRA, and Roth. Those conversions will be greater than what we plan to live on each year, if everything else stays the same with the tax code. (Dreaming here, I fear.)
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Old 11-11-2014, 02:06 PM   #9
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Didn't do many Roth conversions for most of the time when both DW and I were working due to income restrictions.

Finally figured out around 2010 that we could use rollovers from after-tax contributions to our traditional 401k's up to around $50,000 each per year.

Now looking at around 1/2M combined in our Roth IRAs.

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Old 11-11-2014, 02:10 PM   #10
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Quote:
Originally Posted by LOL! View Post
We were not eligible for Roth IRAs until 2009. We cannot even do "backdoor Roth IRAs" because of other interfering rollover IRAs. Last year, our Roth contributions were limited.
LOL,

Do you have access to a 401k that will accept incoming rollover contributions? That is the technique that I used to "isolate the basis" in my retirement accounts. I essentially got all my pre-tax money into the 401ks and all the after-tax money into the Roths without paying any tax upfront.

There are good discussions at fairmark.com about this strategy.

-gauss
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Old 11-11-2014, 02:19 PM   #11
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My 401(k) has never accepted incoming rollovers. But thanks for the suggestion. Otherwise no worries as I will be converting to a Roth IRA in due course.
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Old 11-11-2014, 03:41 PM   #12
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I contributed about $100K in after tax monies to my 401(k) then rolled that into a Roth, so it gave me a big jump over the yearly IRA contribution limits.
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Old 11-11-2014, 06:30 PM   #13
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GTAT ? Sorry about that.... At least you didn't have all of it in one stock

Yes, it was GTAT. I had been in the stock for a long time. The stock had a fabulous 2013, accounting for some of my 67% gains in my Roth account.
Went from 5% up to 20% of the account value before taking home some profit. Sold some at 20+ but did not make more than 30% overall return. Wish I wasn't so greedy...
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Old 11-11-2014, 08:11 PM   #14
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[QUOTE=RetireAge50;1516072]We have funded the Roth Account since it's inception in 1998. Every year except 1 we put in the maximum allowed. The account has finally climbed above $100,000 ($64,000 contributions $36,000 earnings). This works out to about 6% IRR (Wellington Fund).

How is everyone else doing on their Roth?


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I started a year later in 1999 and paid in the max each year since. I made a conversion in one year of about $8,000 or so and paid the tax. My account is at about $115,500 now and my wife's is at $95,500. $211,000 in combined Roth without starting any retirement phase conversions yet ( if we do any).


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Old 11-11-2014, 10:59 PM   #15
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My Roth balance is $182K. I started in the original inception, and rolled over a bit when they let you take 4 years to claim it on your taxes.

I plan on doing back door Roth IRA contribution as soon as my tax rate is lower.
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Old 11-11-2014, 11:30 PM   #16
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Currently only $16.5K in our 401K ROTH due to previous income restrictions but my understanding is I now have an opportunity to move a significant amount of my 401K After Tax balance into our ROTH balance which I plan on exploring.
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Old 11-12-2014, 06:03 AM   #17
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About $330K in two accounts: (a) Roth IRA that was originally a non-deductible IRA and was converted, (b) w*rk Roth 401K account that I have been contributing to for maybe five-six years. Overall, about 10% of liquid assets.
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Old 11-12-2014, 08:44 AM   #18
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With rollovers and Roth 401k we are at $270k with at least 10 years to go unfortunately. I might be switching from Roth IRA contributions to tIRA to manage taxes better. Will contribute 9% of gross in after tax contributions that I will roll over into a Roth 401k going forward.
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