I fully funded both mine and my DH Roth IRA's for 2018. We already filed our 2018 taxes.
DH and I are both working at the same time for the first time this year, so our 2019 income will be significantly more than our 2018 income. Because of this, I opened a traditional IRA for both of us just this past week and was planning on fully funding it over our ROTH for 2019. That means I've been doing a bunch of research and realized I should have been funding the traditional IRA instead of ROTH this whole time. Should/Can we withdraw our 2018 Roth IRA contributions and put them in our new traditional IRAs? We would have to submit an amendment I presume. Since the IRA contributions were Roth, we didn't include them on our filings.
We are definitely under the traditional income limits for 2018, and will just make it for 2019 so long as we meet our other pre-tax account goals. AGI for 2018 ~64K, projected AGI for 2019 ~100K. (both of these do not include Trad IRA contributions). I don't have the exact numbers in front of me but could look later today when I get home. I've never withdrawn money from any of my investment accounts and it's scary! Any help is appreciated.
Loose MATH
(64,000 -19,051 (12% bracket) *0.12 = $5,393.88 taxes paid if contributing to ROTH
(64,000 - 11,000 (IRA) - 19,051(12% bracket)) *0.12 = $4,073.88 taxes paid if contributing to Traditional
$5,393.88 - $4,073.88 = $1,320
Could this also make us eligible for the savers credit since our new AGI would be 53K? Which would be another 10% of the $11,000 contribution.
Total potential tax savings = $1,320 + $1,100 = $2,420
