ROTH contributions growing & changing

Originally from ticket #15575.


If my 45 year old client wants to start ROTH IRA contribution $5,500/per today till y49, then contribute $6,500 till y65. But she also wants to keep the ROTH growing for as long as possible and not to withdraw at the end of life . How do I handle this with your RetirementView software?

Here is how I would do it.

Assuming you set her retirement age to 65, I would enter her contributions under Tax-Free Annual Contribution and set it to $5500. This will cover her contributions of 5500 from 45 to 65. I would then click Cash Infusions and enter a line for $1000 start age 50. Set the growth rate, and then set last column to Tax Free. This will model the two periods as you layer the $1000 onto the original amount.

Then, if you want that withdrawn last... here is the way to do it. Look on the spreadsheet under Tax Free investments to see what the total is at age 65. Then enter a Special Expense for that total to pull it out of the investment buckets temporarily.

Then enter a cash infusion to put that money back in at some later age like age 80.

Does this make sense?

Have more questions? Submit a request


Article is closed for comments.
Powered by Zendesk