US
Married Filing Jointly
Both spouses ~30yo
2019 Estimated AGI: $178,000
Maxing out HSA (only 1 spouse on HDHP) and both 401(k)s
We already deposited a significant amount of the $6,000/each limit into our Traditional IRAs for 2019. However, I just realized that our MAGI will almost certainly be above the deductible Traditional IRA limit ($123,000) due to a substantial increase in income this year. We are therefore "violating" guideline 4 of
https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153 by not contributing to Roth IRAs rather than non-deductible Traditional IRAs since our MAGI will be too high for the latter but not for the former.
What do you recommend we do with the Traditional IRA contributions already made for 2019? Should we try to roll them back since they are non-deductible and move them to Roth IRAs instead? Or is it simpler to do a backdoor Roth IRA from the non-deductible Traditional IRA contributions? Another option?
I made a bad assumption in my head that the income limits were effectively the same between being able to contribute to Roth IRAs and being able to deduct Traditional IRA contributions. It turns out that our income will likely be in the middle-ground where we can contribute to Roth IRAs, but we cannot deduct contributions to Traditional IRAs (making Roth IRAs the best choice this year).
Thanks.