Thanks for the comment. My original edits moved a set of typical cases where each of the two types of contributions are preferred to the top of the page. The second traditional case is:BackToSchoolDad wrote: ↑Wed Jan 13, 2021 9:50 am The only thing I can contribute is that I think the Savers Credit and other credits should be mentioned in the general guidelines section at the beginning in case that's the only thing people read. To me, it can make favoring traditional contributions for people that are within range of various credits especially beneficial.
For example, we're in a low enough bracket that usual advice would be to contribute to Roth, but thanks to the Savers credit our entire federal tax bill can be wiped out with enough Traditional contributions. We can then use those to put back into Roth if we haven't maximized IRA space.
Following some feedback, late last night I moved these slightly down the page, into their own section. Can you take a look and let me know whether this is OK? Or do you prefer those to be moved further up?Low-income investors who can realize a substantial tax savings through lowering Adjusted Gross Income, due to Earned Income Tax Credit, Saver's Credit, ACA subsides, lowering interest payments on an income-driven repayment plan for loans expected to be forgiven under Public Service Loan Forgiveness, and other benefits
Side point: I'm not saying you are wrong to prefer traditional in your situation, but make sure you understand the math - the break-even withdrawal rate when the Saver's Credit is in-play shifts slightly toward Roth, compared to just your tax savings for traditional contributions. For example, if you save taxes at 30% for traditional contributions (including a 10% Saver's Credit), and you get just a 10% Saver's Credit for Roth contributions, traditional contributions are better if your withdrawal marginal tax rate is less than (30% - 10%) / (1 - 10%) = 22.2%, not the full 30% of traditional contributions alone. Feel free to check out the Saver's Credit section of either page for more details.