I've been reading the madfientist on the subject of Roth IRA vs Traditional IRA. He points out that for a RE person it may be more beneficial to contribute to Traditional IRA. This is primarily due to lower income in retirement, and the ability to convert and utilize the Roth pipelining strategy.
Here is my dilemma. With my situation I believe he is right. I've been contributing the max to the Roth for myself and DW for the last 8 years. The 401k's balances are healthy, but never maxed out in any given year.
Family income this year will be 140k. Should I reverse the $11,000 2013 Roth contribution, and instead contribute it to a Traditional IRA? I would then make future year contributions to the Traditional as well.
I believe reversing will cause a tax hit because of the gains this year, but difficult for me to calculate how much.
- growingstaches