Modeling Roth Contributions


I am doing some simple Roth modeling (using Monte Carlo) and getting unexpected results...wondering if I'm missing something in how I'm using the software.

In Scenario #1 I am contributing $23,500 to a Roth account (representing 401k Roth + Backdoor Roth IRA contribution). In Scenario #2, I'm contributing $49,500 (my employer has a plan allowing post-tax 401K contributions that can then be rolled over to a Roth, similar to a backdoor Roth IRA). All other information is the same in both models.

Annual Roth conversions stop when social security begins


I specified 7 annual roth conversions until I reach age 70 and I also specified that social security benefits would begin at age 66. The report correctly shows the first 3 conversions only. When I increase the social security claiming age to 70 then I get all the conversions. Is there a rule that roth conversions must end when social security begins?

Roth Conversion


I know this has come up over and over, but I must be doing something wrong.
Created a "special withdrawal" and a corresponding "ROTH contribution". It computes the taxes and such, but the resulting "discretionary spending" (having chosen "economic based planning", with or without Monte Carlo) is anything but "smoothed". Seems to start out low, and increase (at random intervals?) to about 50% more than it started by the end of the projection. It was flat before I started playing with the Roth conversion. Any suggestions?

efficient retirement withdrawals

Has anyone figured an efficient way to model retirement withdrawals from ROTH and traditional accounts? I figure it's some combination of ROTH and traditional each year and it can be tested on the special withdrawals screen, but it looks like it would take a lot of trial and error to figure it out. When I do withdrawals all from the traditional first, I end up paying no taxes at the end, which must mean I'd be paying too much tax early on, when it would make sense to seek a lower bracket.



I want to model converting part of my traditional IRA to a ROTH IRA. Here is what I did is this the preferred approach?
1. In the "Retirement Accounts/Special Withdrawals" window I entered an amount to be withdrawn from my IRA this year 2015.
2. In the Retirement Accounts/Contributions window I entered the same amount minus my RMD for 2015 as a ROTH contribution in 2015. I had to increase my age of last contribution to this year's age in order for the program to accept the ROTH contribution
Will this approach provide an accurate result?

LIving standard not constant


When I model Roth rollovers to leave to my kids, I do so by making special withdrawals from our retirement accounts then matching special expenditures (non-tax related). These matching special expenditures essentially remove the money from possible use in calculating our living standard.

The resultant living standard that ESPlanner calculates is not constant. It increases when the rollovers decrease.

Is there some way to make the living standard constant?

Thank you.

Breakout Roth retirement accounts in reports?


With the growth of Roth IRAs/Roth 401ks, should these be broken out (displayed) in the reports? Perhaps these could be labeled "tax-sheltered retirement accounts" and "Roth retirement accounts" (or assets or something similar).

If/when you decide to rethink the reports, please consider this.


Roth 401K


If you have a Roth 401k and a regular Roth IRA, do you just sum them and put the total in the Roth IRA field? (Assuming that's correct, I suggest re-labeling the field and report column to Roth IRA/401k.) Thanks!


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