Thank you for the insight. I have decided I will keep a much smaller EF. Would you say a viable strategy is to take that 21K and use 11K to max out the Roth IRA's then put 5K in taxable with 5K left in the savings or just dump the whole 10K in? As stated I could always withdraw the 11K from our Roth accounts if needed. I would most likely utilize our 30K of credit card capacity and use the Roth contributions to pay it off as soon as possible should an actual emergency arise. We also have about 20K in equity on our home currently as another fallback.
Is this the entirety of your accounts? So you can save 30k/year, and you're just beginning your journey? Congratulations!
Then I would be slow about your changes for now, until you have a bigger stash. If all you had was 2 Roth accounts with a total of 22k of contributions(2016 + the possible 2017), and 10k besides that, and 20k of accessible savings makes you sleep well at night, than a 50% drop today would crater you at the start of your journey. Besides that, what makes me personally sleep well at night is having 3k-6k of cash in my credit union account, allowing me to have random paycheck disruptions or pay off CC/bills for 2-3 months before having any issue.
I'm also not sure about it, but I don't think the 20k in equity on your house is at all material for any calculations, or even HELOC access.
Me, I mostly skipped having an excessive emergency fund due to being in the military,(little need to keep major savings) and then going on a deployment and not wasting the money(immediate +20k, which shortly ended up in a CD(~3.5% yield at the time for 7 years?)/Roth/Taxable split). By the time I left the military, my taxable account was I think ~80k I think, and I had margin access on it, and I was immediately employed post-military. I was also familiar and confident with the speed of ACH transfers from credit union to taxable account, little need of having 10k of cash sitting around.
If I were in your shoes, and with the information currently available(and let's assume relatively stable jobs/desirable skills), and with my own temperament/knowledge, and say with monthly costs <3k/month, I think sinking half your 2017 contributions now wouldn't hurt, sleep on it a bit, and maybe finish up the contributions in 6 months. Find your own balance on actual cash in savings accounts/checking, I've tested myself and I am absolutely antsy if mine drops below 2k, even if a paycheck should clear before the mortgage comes due.
After you have your taxable/Roth e-fund to a satisfactory size(IMO always consider the possibility of a 50% drop for equities, especially emergency funding related), I'd also consider your tax bracket, and consider maxing 401k. See Madfientist Retire Even Earlier:
http://www.madfientist.com/retire-even-earlier/And later on in our journey, an "emergency" that took us out of the job market would mean we could use our taxable + roth accounts to float the unemployment if necessary, and it also means an opportunity to fill the Roth back up with 401k-> Trad IRA -> Roth IRA conversions up to the top of the 15% tax bracket if you feel like it(or whatever place you want to stop below that mark for ACA subsidies).
If you are into Real Estate/landlording, do consider that equities are not the place to save for the short term for downpayments.