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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: SailAway on July 30, 2014, 04:44:54 PM

Title: Roth or traditional IRAs for us?
Post by: SailAway on July 30, 2014, 04:44:54 PM

I'm leaning toward traditional because I think our taxes in retirement will be less but would like a second opinion. Roth seems "easier". Sigh.

MAGI for 2013 for the husband and I: $108,876 in 2013. I'm 38, husband is 41. We hope to FIRE in 2026 (in 12 years) on his pension (approx 32k/year). My (much smaller) pension won't kick in until 9 years later. We will hopefully stop contributing to our retirement accounts in 2026 but not withdraw for another 9-10 years.

Planning on maxing out the IRAs for the 12 years. I also have a 401r through work that I'm contributing to but hope not to withdraw from until after 60. My 401 is a combination of pre and post tax contributions.

Any thoughts appreciated.

Title: Re: Roth or traditional IRAs for us?
Post by: ender on July 30, 2014, 04:46:32 PM

http://www.irs.gov/Retirement-Plans/2013-IRA-Deduction-Limits-Effect-of-Modified-AGI-on-Deduction-if-You-Are-Covered-by-a-Retirement-Plan-at-Work

You are on the threshold for deductibility, are you contributing to a 401k/HSA as well?

Title: Re: Roth or traditional IRAs for us?
Post by: SailAway on July 30, 2014, 04:51:20 PM

Quote from: enderland on July 30, 2014, 04:46:32 PM

http://www.irs.gov/Retirement-Plans/2013-IRA-Deduction-Limits-Effect-of-Modified-AGI-on-Deduction-if-You-Are-Covered-by-a-Retirement-Plan-at-Work

You are on the threshold for deductibility, are you contributing to a 401k/HSA as well?

Good point. I contribute to a 401r. Husband does not (govt exempt). We both have HSAs and contribute the joint max.