This year, my income is going to be just under the
limits for deducting an IRA. I will have, after 401k/HSA deductions from my income likely between 55-60k in modified AGI which is just under the 60k full deduction limit.
I put $5500 into my Roth IRA in January of this year. I've a mix currently of traditional/Roth/taxable investments right now.
Because I hopefully am going to have a family in the next few years I am pretty strongly considering recharacterizing this into a traditional IRA for a few reasons. With my income and discussions with the SO, if we end up with a few kids our marginal federal rate is going to be pretty low (unless I get ridiculous raises in that time period). It's likely in the next years we are going to have available space in either IRAs/401ks, too.
Recharacterizing would result in about a 30% tax savings, so about $1500.
Am I missing something or is this just a no-brainer? If I call Vanguard will they be able to separate the deductible part from my Roth IRA (I have contributed for several years now) into a traditional IRA?