So you are another example of this rule that I've given, that JW has given, that JamesSFO has given, that Mike Piper has given... heck that Vanguard gives.SC Hoosier wrote:I realize that I am a outlier in this forum, but for my situation the tIRA cannot possibly win. My wife and I both work and have a household income of 34,000. We pay NO federal income taxes because we have 3 kids. I probably will work part time in retirement just to feel useful. So, if we make approximately $20,000 per year with some social security income, I'll be really glad that I chose a roth. I wouldn't get any tax reduction for contributing to a tIRA anyway. Later in life, with a higher income and no kids at home, it would be a good idea for me to start contributing to a tIRA so that I can reduce my current tax burden and have some different withdrawal options in retirement.
This is all about the marginal rate. Right now for you, because of the factors you mention, your marginal rate is zero. You're saying (probably correctly) that your rate won't be any lower during retirement and will probably be higher. So "give up" the tax benefit now... and "take" the tax benefit later on.
You're doing it right.