Thanks for checking out my first post. In short, I am seeking advice regarding the choice between Roth and Traditional contributions for 2021.
Life Situation: MFJ, 27 years old, living in Chicago on more or less a single income (I'm a grad student with a modest stipend and some gig income), with no debts. In 2021, we plan to max out DW's 401k, our HSA, and IRAs for both of us, with any remaining savings invested in our taxable account.
Gross Salary/Wages: Around $100k depending on DW's annual bonus, an anticipated raise, and my gig work
Taxes: Total (FICA, federal & state) taxes are projected between $13k (if we make Traditional-only contributions) and $21k (if we make Roth-only contributions)
Current expenses: $35k in 2020, carefully tracked - I'll save those face punches for another post
Assets: $225k
- Cash: $19k
- HSA: $5k
- Roth 401k (DW): $59k
- Roth IRA (DW): $39k
- Roth IRA (DH): $39k
- Taxable Brokerage: $64k
Specific Question: Given our current single income situation we have been opting for Roth-only contributions to DW's 401k and our IRAs, with the idea that once I finish school and get a job (in about 2 years, with a move very likely) we will switch over to making Traditional contributions because our combined income will be higher than it is now and higher than any amount we are likely to spend per annum in retirement. This means that we currently have $137k in Roth vehicles and nothing in Traditional ones. Is this is a good plan, or should we consider making Traditional contributions sooner (or later)?