Hi all
I'm 37, make 101k with 3% employer match to 401k. Wife 35, makes 40K, no match. We have 2 kids ages 3 and 1. This is less than we've made in previous years due to a lifestyle change (less work, more free time with kids, yeah!). Probably will make more in the future due to my job growth.
We both max out our 401ks.
This year, we are on course to max our Traditional IRAs. My understanding is that at our current income level we can deduct both 401k and IRA. Is that correct? Was this the right choice? My thinking: lower our tax bracket while we have the chance and qualify for health insurance subsidies.
If not the right choice, why?
If so, at what income level does it make more sense to max the Roths?
TIA!