Question: (Clay, Westerville, OH) I’m 42 and wife is 40. I make about $135K and wife stays at home with kids. We have ~$650K in my governmental 403b (all pre-tax) and $350K in our Roth IRAs. Our base case is retirement at 58 with $3.5M which we are on track for with a ~6% return. If we hit that number before 58, I could retire before that. Mortgage would be paid off and likely need about $75K in income. We currently save 25% of our gross income. I max both Roths and just started contributing to a Roth 457. There will be no SS income. Two questions.
1) Should one maximize the #Roth457 first instead of our Roth IRAs because of the additional flexibility it grants us to get us to 59.5 and also helps solve for ACA credits in the future? I also have $100K in a retiree medical account (like an HSA after you retire) that will likely be about $200K at that time. So, in theory, I could just pay for health insurance out of pocket as well drawing on those funds and do some roth conversions of my 403b.
2) how do you guys look at pension options? The 403b can be completely or partially converted at 55 to a pension as I chose the self directed plan not the guaranteed pension option when I started 20 years ago. It will have a COLA that matches CPI but cannot exceed 3%. “Traditional” view is if its a 6% distribution to take it and I like the idea of converting some of it to create an income floor/conservative portion of assets similar to Social Security (between $25K to $40K). But, I also feel like I could take the money I’d allocate to the pension and create my own while controlling taxes with our Roth assets and possibly converting balances to Roth.

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