My wife and have Roth IRA's and after having our 2017 taxes done I'm thinking that tIRA's might be a better choice for us. So here is my two part question...
How to contribute to a tIRA...
Do you contribute with after tax dollars from your paycheck? Then at the end of the year you deduct the contributions from your taxes there for its essentially the same as contributing with pre tax dollars? If not, how are contributions made pre tax, direct deposit from employer prior to your paycheck being payed?
Would it be deductible for us...
We both have 401K's that we will max out yearly (we fell a little short in 2017)
In 2017 we grossed $131,691.62, after our 401K contributions we were at $105,931, and after deductions we were at $81,341 of taxable income.
In 2018 we expect our income to be just a little higher than 2017. Maybe another $2,000.
We have no kids, a mortgage less than $115,000, and next to no other deductions.
My thoughts are that if we contribute to tIRA's thats another $11,000 we can deduct from our taxes each year that we can't do with a Roth.
So the question being, is that correct, at our income level would we be able to deduct the full $11,000 of tIRA contributions?
SIDE NOTE: I am aware the tax differences between the two should not be the sole reason for selecting one over the other.
Thanks for any clarity you can give me on this!
