[Linda]

Tell me what you have..

[Huang]

However, I can explain the basic differences between a Roth IRA and IMRF to help you make an informed decision.

A Roth IRA is a retirement savings account that allows your son to contribute after-tax dollars, meaning he pays taxes on the money now, but won’t owe any taxes when he withdraws the funds in retirement. A Roth IRA offers tax-free growth and tax-free withdrawals in retirement, as long as certain conditions are met.

On the other hand, IMRF (Illinois Municipal Retirement Fund) is a defined benefit pension plan for eligible public employees in Illinois. With a defined benefit plan, the employer promises to pay a specified amount of retirement income based on a formula that takes into account factors such as salary and years of service.

When deciding between a Roth IRA and IMRF, it’s important to consider your son’s retirement goals, investment objectives, and risk tolerance. Generally speaking, a Roth IRA provides more flexibility and control over investment choices, but it also exposes your son to market risks. On the other hand, IMRF provides a guaranteed retirement income, but your son has less control over his investments.

Ultimately, the decision between a Roth IRA and IMRF will depend on your son’s individual circumstances and goals. It’s a good idea to consult with a financial advisor or retirement planner to discuss his options and create a personalized retirement plan.

[Don]

Guess it depends what the IMRF has for funds. These are just the accounts where the investments are bucketed. The investments inside them is more important.

[Author]

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