I’ve made over $300,000, but I only have $546,000 in retirement savings. How can I save more while supporting my family?
Michele Kagan, Financial Advisor and Columnist
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I am 48 years old. I made $310,000 last year and currently have $546,000 on my retirement plan. My husband has a disability, is not working and has no 401(k) plans. I wanted to open a Ross IRA, but I read that I’m making money. What options do you need to save more money for retirement? I have no debt except for mortgages. I’m trying to remove my mortgage over the next two years before my daughter goes to college. What advice would you give?
– Nilda
Navigate retirement Account rules can be confusing and frustrating, and it looks difficult to save as much as you want. You already have a solid foundation to build more options than you find yourself strengthening your savings.
I have a workplace plan, but still Traditional IRAYour contributions are non-deductible. You can also create a spouse IRA for your husband to contribute. And you earn too much money to contribute directly to the Ross IRA, but you may be able to contribute through the backdoor loss IRA.
For mortgages, if the interest rate is below 4%, it is worth noting that you make additional payments and saving or investing that money instead. For example, high-yield savings accounts currently generate around 5%. A certificate of deposit (CD) for a year is paid up to 5.5% or more. Just because your savings and investments are not in your official tax-advocated retirement accounts doesn’t mean you can’t use them to fund your retirement.
Women review IRA and workplace retirement plan balances.
Anyone can contribute to both workplace planning and traditional IRAs, but your contribution may not be deductible based on your income.
You can donate up to $6,500 ($7,500 for those over 50) to your 2023 IRA. If your spouse is also not covered by your workplace retirement plan, your contribution will be deducted.
However, if you or your spouse has a workplace retirement plan, such as 401(k), the contribution may be partially deductible or fully deductible. Even if you don’t get the current tax deduction for your contribution, you’ll still get tax requests growth on your account. If you take withdrawals when you retire, your growth and revenue will be taxed.
Another plus: having money in an IRA gives you the option to convert to a Roth IRA. (And if you need help planning your loss conversion, Talk to a financial advisor. )
The deductions you may have depend on your household income and application status:
IRA contribution limits:
Traditional IRA deduction step-by-step range:
If you or your spouse is covered in a retirement plan at work, then Tax credit Traditional IRA contributions may be reduced or phased out based on you Modified Adjusted Total Revenue (MAGI) and Submission Status:IRS+2IRS+2IRS+2
Single filers eligible for workplace retirement plans:
Complete deduction: The magi Under $79,000になったんです。 English: The first thing you can do is to find the best one to do.
Partial deduction: Magi in between $79,000 and $89,000になったんです。 English: The first thing you can do is to find the best one to do.IRS
No deduction: The magi Over $89,000になったんです。 English: The first thing you can do is to find the best one to do.
Jointly married submission (spouses who contribute to the IRA covered in the workplace retirement plan):
Complete deduction: The magi Under $126,000になったんです。 English: The first thing you can do is to find the best one to do.
Partial deduction: Magi $126,000 and $146,000になったんです。 English: The first thing you can do is to find the best one to do.
No deduction: The magi Over $146,000になったんです。 English: The first thing you can do is to find the best one to do.
Jointly married (spouse contributes to IRAs) do not have Covered by workplace retirement plans, but covered by spouse):
Complete deduction: The magi Under $236,000になったんです。 English: The first thing you can do is to find the best one to do.
Partial deduction: Magi in between $236,000 and $246,000になったんです。 English: The first thing you can do is to find the best one to do.
No deduction: The magi Over $246,000になったんです。 English: The first thing you can do is to find the best one to do.
Roth IRA contributions stepwise range:
Ability to contribute to Roth Ira It also depends on the MAGI and filing status.
Generally, you need to earn income to contribute to your IRA. The exception is if you have a spouse who is operating sufficiently to cover the contributions of two IRAs. You can open A Spouse IRA For non-working spouses. A spouse IRA gives your family the opportunity to double their retirement savings.
Despite its name, a spouse IRA is no different from a regular IRA in how it is set up or in its tax benefits. It is not a joint account either. Only non-working spouses own this IRA. However, to qualify for a spouse IRA, you must use “Joint Marriage” as your income tax application status.
Same contribution limit Roth Iras Traditional IRA deduction limits apply in the same way to retirement accounts. Traditional spouse IRAs are also eligible Loss conversion. (And if you have more questions about your spouse’s IRA, Consider matching with a financial advisor. )
Couple sets a spouse IRA on laptop.
Roth Iras has some useful twists that make it desirable for many taxpayers. For one thing, as long as you follow the rules, all withdrawals, including growth and revenue, are not entirely tax-free. There’s no need to take another one Minimum distribution required (RMD), so your money has more time to grow.
Unfortunately, the contributions of the Ross IRA are subject to income restrictions and lock many people up. In 2025, a single filer married to co-applicant Fire, who won more than $165,000 and more than $246,000, will not be able to contribute to the Ross IRA.
Where is that Backdoor loss It will appear. This conversion process gives higher incomes the opportunity to move money sitting in a traditional IRA to the Ross IRA. (And if you need help with setting up a backdoor loss, Talk to a financial advisor. )
The process is very simple. If you have not already set up a Roth account, create one. Tell your IRA administrator that you want to convert all or part of your traditional IRA into a Roth IRA. You fill out some documents and the administrator will handle the rest.
Some other caveats to keep in mind:
There’s something special Ratio tax rules Both pre- and post-tax contributions require that you determine the amount of tax owed on the conversion, taking into account all the overall traditional IRA. You cannot choose and choose the IRA money to convert.
That said, a tax-free withdrawal at retirement might be worthy of all potential complications.
Even if you have a workplace plan, you can increase your retirement savings by contributing to your IRA and spouse IRA. You can also create a tax-free retirement income stream by converting a portion of your retirement funds into a Roth IRA.
Find a Financial Advisor It doesn’t have to be difficult. SmartAsset’s free tools Matches with a vetted financial advisor who serves your area. You can use free referral calls in an advisor match to decide which one you think is right for you. If you are ready to find an advisor who can help you achieve your financial goals, Get started now.
Consider a few advisors before you settle for one. It is important to make sure you find someone you trust to manage your money. When you consider your options, these are Questions to ask an advisor Make sure you make the right choice.
Keep your emergency fund on hand in case of unexpected costs. Emergency funds must be liquid – with accounts that do not have the risk of major fluctuations like the stock market. The trade-off is that the value of liquid cash can be eroded by inflation. However, using a high profit account will allow you to earn compound interest. Compare savings accounts from these banks.
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Michele Cagan, CPASmartAsset Financial Planning columnist, answers reader questions on personal finance and tax topics. Do you have a question you want to answer? Please email askanadvisor@smartasset.com. Your questions may be answered in future columns.
Please note that Michele is not a participant on the SmartAsset AMP platform, nor is he an employee of SmartAsset. She is compensated for this article.
