What percentage of your portfolio is tax deferred

[pacergal]

70-80%
35 years ago, pre tax was the best financial way for us to save. My work never offered a Roth until a couple years before I retired, and we had no money match.

 

[Tallman4123]

71% tax deferred, 3% in Roth & HSAs and 26% taxable.

The current Roth conversion thread has been great to read and digest, but I believe for now that prioritizing managing MAGI for ACA subsidies makes more sense for us than conversions (our subsidy for 2019 is approximately $15k). When I hit 65 in two and a half years the math may change, but given that DW is eight years younger and will still need some form of private health insurance, I'm not convinced that'll be the case.

 

[Lewis Clark]

I always assumed that most people saved like megacorp-types (including myself): Max out the 401k tax-deferred, and only if there's anything extra to invest, put it somewhere else, like a taxable account. The result is the vast majority of the portfolio being tax-deferred.

I'm interested in hearing more about how the people have only a low percentage tax-deferred got there.

My wife maxed out her 401(k) contributions every eligible year.

My employers generally didn't offer 401(k) plans or similar options. And I was the higher earner.

Can't invest like a megacorp-type employee if I don't work for an employer offering megacorp-type benefits. Lots of folks in similar situations.

 

[kcowan]

Been retired for 17 years, still 38% deferred.

 

[Rianne]

50% tIRA and we have to contribute to tIRA this year to stay under ACA income requirements. I guess we'll worry about it when we're 65. It's gonna hit the fan at 70 with SS and pension income. We've had FA's over the years, not now. Why the heck don't they talk about this? Could have gradually moved from tIRA to Roth while working years ago.

 

[Trooper]

Taxable: 19%
Tax-Deferred: 67%
Tax-Free (Roth, HSA, and VA): 14%

For us, the calculation is a little different because of our Variable Annuity with Vanguard. Since the VA's gains are taxed first -- at ordinary income upon withdrawal -- I include them in "Tax-Deferred". The VA's basis is tax-free so it is included there.

Will continue to do Roth conversions until it no longer makes sense (maybe another 3-4 years).

...prioritizing managing MAGI for ACA subsidies makes more sense for us than conversions (our subsidy for 2019 is approximately $15k).

Glad I don't have to manage MAGI for ACA subsidy purposes.

 

[Finance Dave]

about 60% here. Wish I had more in Roths.

 

[Midpack]

I'm surprised, too, but in the opposite way that you are. I always assumed that most people saved like megacorp-types (including myself): Max out the 401k tax-deferred, and only if there's anything extra to invest, put it somewhere else, like a taxable account. The result is the vast majority of the portfolio being tax-deferred.


I'm interested in hearing more about how the people have only a low percentage tax-deferred got there.

DW and I maxed out 401k from age 30 on and I made the max allowable contributions to a TIRA for about 15 years. But our spending has always been far below our incomes - in my best bonus year we saved over 70% of gross income, so I was saving much more than our 401k and TIRAs with no place to go but taxable. So we're only 30% tax deferred. Like some/many here, we had fortunate careers income wise...but we'll pay a lot in taxes between now and when we go poof. First world problem to be sure.

 

[calmloki]

We are pretty close to 1/3 in tax deferred - if the rental properties are considered tax deferred. They pretty predictably grow in value but we are only taxed on that value when we sell. Before that time they throw off vigorously taxed on their income.
No kids, so no desire to avoid selling them forever, which means at some point we'll take a big tax hit. Actually just closing on the sale of our last individual rental house, so this April will be a little taste of what's to come.

 

[GrayHare]

Wow, poll results show higher % tax deferred than I expected. That means there's an awful lot of money awaiting taxation at ordinary rates that instead could have been taxed at lower dividend and cap gains rates. Makes me wonder if the tax deduction for annual IRA contribs is enough to make up for the later loss of lower div and CG rates.

Edit: At retirement the tIRA does provide more after-tax money, even after being taxed at the higher ordinary rate, but only for those who qualify to deduct their contrib when filing income taxes. Conversely, for those who cannot deduct their tIRA contrib, the tIRA provides LESS after tax money at retirement.

 

[REWahoo]

Wow, poll results show higher % tax deferred than I expected. That means there's an awful lot of money awaiting taxation at ordinary rates that instead could have been taxed at lower dividend and cap gains rates. Makes me wonder if the tax deduction for annual IRA contribs is enough to make up for the later loss of lower div and CG rates.

The marginal tax rate on my IRA withdrawals today is 12% vs. the 31% I would have paid had I not deferred that income.

 

[garyt]

I'm 95% tax deferred, 5% Roth. But I don't have anywhere near the amount of money as many on here, so I'm not too worried about taxes.

 

[HenryD]

I'm hoping this will be true for me too...

The marginal tax rate on my IRA withdrawals today is 12% vs. the 31% I would have paid had I not deferred that income.

86% Pre-tax
9% Roth
5% HSA

 

[Montecfo]

65% tax deferred, 25% taxable, 10% Roth.

Of the taxable, less than 10% deferred gains. I tend to recognize/deduct losses, and contribute gain positions to charity which has kept the unrecognized gain low, and have about half of taxable in cash/ST Bonds.

i would prefer to have about 20% in Roth. I plan to convert to the top of 12% bracket between now and age 70. Will evaluate going into 22% bracket as hedge against widow/widower tax hit. That should be workable and if my napkin math is correct.

 

[Offgrid Organic Farmer]

Deferred means it will still become taxable eventually.

My portfolio is all tax-sheltered. Its gains are not taxed.

 

[ChrisC]

55% tIRA, 457b, 401K and TSP
30% Roth
15% Taxable

 

[Downtown]

46% tax deferred. We did some Roth conversions in 2010, which put our % lower than it would have been otherwise. We plan on doing more Roth conversions over the next few years.

 

[Downtown]

46% tax deferred. We did some Roth conversions in 2010, which put our % lower than it would have been otherwise. We plan on doing more Roth conversions over the next few years.

46% tax deferred
35% tax free
19% taxable

 

[CyclingInvestor]

99% IRA (tax deferred)
1% Roth
0% taxable

 

[Splash]

77% tax deferred*
3% tax free
20% taxable (unrealized capital gains = 15%)

Currently 57 and retired 2.75 years. Plan is to do a combination of Roth conversions / tax deferred withdrawals up to the ACA cliff until 65; then up to the capital gains/dividend limit until 70.

*17% of tax deferred amount is the lump sum value of my pension. Still undecided if (and when) I will draw as a pension or if I will roll into a Roth IRA.

 

[Scrapr]

Approx 10% or a bit more tIRA. Slightly less in Roth. Balance in taxable. But...a bunch of the taxable was from harvesting the equity in our main house sale 3 years ago. I'm comfortable in being able to pull from taxable at our leisure and not have the tax bomb over our heads. I guess I shouldn't say "our" as Mrs Scrapr passed a few months ago. So this will be my last year filing joint. Next year will be filing Single. So i will need to think about the implications there

 

[Alan]

15% tIRA, 62% Roth, 23% after tax

tIRA should be at zero within 3 years which is just before SS and UK SS starts for both of us.

 

[Golden sunsets]

66% traditional IRA
2% Roth
32% taxable

We expect to be in the 24% tax bracket indefinitely starting this year as we are both now subjest to RMD's, which is a lower tax bracket than we were in while contributing to our 401K's. We were only able to convert to Roth's one year, prior to this, as our tax bracket was so high.

 

[Bir48die]

15% Deferred Compensation
22% Taxable
63% Tax Deferred

 

[N02L84ER]

When DH retired 14 years ago, we were 66% taxable, 32% deferred, 2% Roth. We always worked for small companies or were self-employed and rarely had opportunities to contribute to 401ks but maxed them out when we did. Primarily, we contributed the max amount to IRAs and the rest into taxable accounts. Since he retired, we have been doing Roth conversions.


We are now at 35% taxable, 26% deferred, 39% Roth. Taxable is around 45% capital gains. We will continue to do Roth conversions until he turns 70.