Bichon Frise wrote:
The real question, or missing piece to the puzzle, is what will your wife do in the future? Well, the other missing piece is what your goals are. But, if your wife only truly believes she will work for another 5-10 years, perhaps the 403b isn't so bad. You suck up the high fees for the initial years, and then you rollover when she quits. So, it isn't optimal, but you then have some funds now in your control in an IRA. The other thing is if you plan to retire early, what is your plan for funding until you can tap your tax-advantaged accounts? Albeit, there are rules in the IRC which allow for withdrawals, but what's your plan?
Finally, does her plan allow for rollovers while she is still in service? A longshot, but not unheard of.
She plans on sticking it out until age 55 (when full pension and retiree healthcare benefits kick in)...for each kid she can take up to 2 years off while they hold her position. Most likely she won't use all of that time.
Also, no rollovers while still in service.