Ask an Advisor: I Earn $310,000 With $546,000 Saved. How Can I Boost Retirement Savings With a Nonworking Spouse?

Core Insights - The article discusses retirement savings options for individuals with high incomes who may face limitations on contributions to certain retirement accounts [2][3]. Group 1: Retirement Account Options - Individuals can contribute to a traditional IRA, although contributions may be non-deductible if they have a workplace retirement plan [3][9]. - A spousal IRA can be established for a non-working spouse, providing additional savings opportunities [3]. - Although direct contributions to a Roth IRA may not be possible due to income limits, a backdoor Roth IRA could be an alternative [3]. Group 2: Mortgage Considerations - If the mortgage interest rate is below 4%, it may be more beneficial to invest or save extra payments rather than paying down the mortgage [4]. - High-yield savings accounts currently offer yields around 5%, and one-year CDs can pay up to 5.5% or more, presenting viable options for retirement funding outside of tax-advantaged accounts [4]. Group 3: Contribution Limits and Tax Implications - For 2023, individuals can contribute up to $6,500 to an IRA, or $7,500 if aged 50 or older [8]. - Contributions to an IRA may not be deductible if the individual or spouse is covered by a workplace retirement plan, but the account still allows for tax-deferred growth [9]. - Funds in an IRA can be converted to a Roth IRA, providing further flexibility in retirement planning [10].