Hello, thank you for taking the time to read/help me out. I am 32 years old and my spouse is 30 years old. We have a special needs 2 year old who will likely need some form of care the rest of her life. I have only recently started to seriously look at our retirement goals. My primary concern is wanting to make sure our child is taken care of even after we pass/are unable to care for her ourselves.
Our retirement currently looks like such:
-my spouse has a pension, she will likely retire making around 80k per year with a pension providing around 80% of that yearly salary.
-If I work another 25 years in my field I would receive a pension of 800/mo for life
-I have a 457(b) plan with 62k in it. Our budget should allow me to contribute up to the max of 19.5k per year in to that fund. I currently contribute 5% and my employer matches their max of 8%. I have the option to contribute to a standard pre-tax plan, or a roth style account where I contribute taxed income. I believe I could contribute the max each year either roth or non roth.
My current thinking is that both my wife and I at retirement can live off of her pension, my small pension, and my social security. Meanwhile, keeping my 457 plan as an inheritance for our child. The only thing that I can find when it comes to pros/cons of roth vs non roth is that a roth doesn't seem to have an age where you are required to make withdraws from the account. Are there any pros/cons of either when it comes to a child inheriting the account? Does a roth get taxed all the same as a non roth? Is there a different type of account entirely I should be looking at?
Submitted March 21, 2021 at 08:01AM by FPSleothrowaway https://ift.tt/3c6vLDZ
