Maximize IRA but do traditional one!

You want to maximize your tax (sounds strange, right?) and minimize your MAGI (modified adjusted gross income).  You thus want to maximize IRA using after tax money so you reduced your MAGI and also maximized your tax.  Also, plan ahead.  The most important tax return is the base year, which is the year before the kid entering the college.  If the kid enrolled in college in August 2013, then tax return for Year 2012 and 1011 are the most important.  Since when you apply college, depending on early or regular admission, you probably haven't had your 2012 ready and thus provide 2011 return.  Financial aid people will caluclate EFC based on base year information.  In the following years, for most parents who have relative stable income, adjustment will be minimum.  My understanding is financial people just set up some thresholds like tax brackets and do some small adjustments.  The relation between income and EFC is not a smooth line but a step function.  Thus base year income information will be critical.