H1 to H4 while H1 extension is in progress


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Can someone please help with below scenario? 


Both myself and my wife are under same employer. I have my petition and stamped VISA expiring in Dec 2016. My wife's also has stamped VISA and petition that expires on Sep 2018.

During our last entry to US early this year, we both got  i94 expiry date as Sep 2018.


Now my wife want to quit her job and want to become my dependent H4. Meanwhile my employer had approved to start my H1B visa extension since my petition is expiring in Dec 2016. 


My question is, should I first convert my wife to H4 first or apply for my extension and her conversion together? I don't want to get into trouble with sequence of events. Just looks for correct approach.



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