My husband and I have contributed $3400 to the two Roth IRAs that we opened this year. But the more I think/read about, I am not sure if a traditional IRA isn't the way to go. I am a newbie at this and I don't know all the nuances of IRAs.
Married, obviously, with two children. We are currently within the 15% tax bracket. Even with an anticipated salary increase and addition of my husband's salary within the next year, if we max our 401Ks, we should be able to stay in 15% bracket for a while.
Should we stick with the Roth for the time being? Until we hit the 25% tax bracket, then switch to traditional? I don't know how to predict how we will be taxed in retirement. I have a hard time wrapping me head around this.
To complicate matters, I will be receiving a lump sum vacation payout (just under $7k probably) in a few weeks when I switch jobs. I was planning to just stick it in the Roth IRAs. This would sit better with me if I could deduct the contributions. Am I missing anything?