http://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits
For a married couple filing jointly you can not deduct your Traditional IRA contribution if you have greater than $116,000 modified AGI. The partial reduction begins as "early" as $96,000 in AGI. You could max out both of your 401ks and you still wouldn't get the full deduction. Do you have access to a HSA? Maxing that out as well as the 401ks should lower your adjusted AGI enough to allow you to qualify for the full deduction.
When it comes to contributing to an IRA, unless you have an HSA you can contribute to, a Roth is likely your best answer. I do think you should reconsider your 401k contributions however. At your income level and with the percentage of tax you're paying, maxing out your 401k is going to save you a lot more money than even the average high fee 401k account will cost you. A lot more.
Random guy on the internet recommendation? Max out both 401k's first (and squeeze in a HSA in there if you have one), then use whatever money you have left over to fund Roth IRAs.
Thanks for the advice. This is good timing re: the 401k advice as my wife's was just switched over to Fidelity and we've been looking at changing her elections. We are going to max hers out. They currently have everything is a high expense ratio (.78) managed fund. Looking at the account, we have access to the following Spartan Index Funds:
1) FUSVX- Spartan500 Index Fund with .07 expense ratio (Large cap)
2) FSEVX- Spartan extended market index with .08 expense ratio (Mid cap)
3) FSSVX- Spartan small cap index with .34 expense ratio (small cap)
4) FSGDX- Spartan Global excluding US Index fund with .17 expense ratio (international)
5) FSITV- Spartan Bond Index with .17 expense ratio
What do you think a good blend of the above, percentage-wise, would be? We are in our lower 30's and both planning to now max out our 401k's per the good advice taken here. I know there is also a spartan total market fund, instead of the spartan500, but that isn't an option in the choices.