Personal Finance (Not Investing) • Seeking advice on financial situational

I have been following this site for years, but this is my first post as I am seeking advice on two issues.

1.We have always made Roth contributes as I value the simplicity of it and not worrying about RMDs in the future. As our income increases, I have wondered if we should make the switch to Traditional.

2.We just had our first child, and I am looking into if we should do a 529 plan. I am unsure if having money tied up in a restrictive account is worth the capital gains saving, especially since we don’t know what college will look like in the future. The state income tax savings for Virginia seem inconsequential and only being able to roll over $35k to a Roth IRA doesn’t seem like much help.

I would appreciate any thoughts on these issues and advice on anything else. Below is more information on our situation.

Age: 34/30
Tax Filing Status: Married Filing Jointly
Tax Rate: 24% Federal, 5.75% State
State of Residence: VA
Income: ~$350k
Net worth: ~$1.6M
Debt: None besides mortgage, $550K @ 3.75%

Current assets
Cash: ~$10k
His Brokerage: $621k
Her Brokerage: $30k
His 401k: $376k (100% Roth)
Her 401k: $301k (100% Roth)
His Roth IRA: $145k
Her Roth IRA: $38k
His HSA: $24k
Her HSA: $28k

We are 100% stocks with all holdings in index funds (90% Domestic/10% international).
We both max out Roth IRAs (backdoor), HSAs, and 401Ks (wife maxs out mega backdoor).
I work for the Federal government and plan to retire at age 50 with a 41% pension. I also receive ~$24k in VA disability which will continue in retirement.

Thanks

Statistics: Posted by ReasonableGuy — Sun Sep 15, 2024 2:51 pm — Replies 0 — Views 32

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