Hi all,
Last year we hit the partial Roth-IRA phase out, because our MAGI fell in the ~$180K range, even after accounting for 2 maxed out 401k's and a family HSA, mortgage interest deduction etc. We're well beyond the income range for deducting tIRAs.
I had to do some reclassifications of my Roth-IRA contributions to non-deductible tIRA contributions once I did my taxes this year. Although this year we're expecting to be fully phased out of the Roth-IRA eligibility.
I've reviewed the 'Investment Order' that gets thrown around here a lot, and I think it is a wonderful tool, but I think it falters for high income individuals.
So I see these as my options:
- Throw extra savings in a taxable account
- Throw extra savings in a non-deductable tIRA (unless I'm missing something, I see absolutely NO reason to do this versus taxable?)
- Pay down the mortgage to remove PMI
Details about the mortgage:
$449K remaining at 3.5% but with PMI of $158/month since we only put 10% down on our $513k house (facepunch).
So that being said we're at 87.7% LTV right now so it would take approx $50k to eliminate PMI automatically at 78% LTV.
No other debt, no children yet but planning on 1-2, ages 29 and 28 and a net worth of approximately $400k. So I realize we're in a very privileged position, but still looking for any and all advise to help further optimize this portion of our lives.
Thanks!