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Hi,
I have been reading a lot regarding how to rule my retirement, but I still kind of confusing.
I am at my late 30s with a full time job with 403(b) account, my income MAGI is in the range of 165k to 210k. My wife is a stay home mom, she is tutoring on the side, but only makes 4k a year, and this income goes into our LLC.
My CPA has been advising me to maximize my 403b so I have been doing that and save $6,000 into my wife's IRA.
MY first question is:
If my income MAGI is below that's say $196,000, could I still save money $6,000 into roth IRA? Even I already maximize my work retirement account (403b), and I saved $6000 into my wife's traditional IRA account?

second question:
If my MAGI is above $206,000, could I do a back door IRA? If I understand right, I have a work retirement account and MAGI is more than $124,000,I can't even save money into traditional IRA so back door IRA won't be an optional for me.

third question:
Will that be a point, I couldn't save anymore for my wife's traditional IRA account? (such as income goes beyond a range)

Last, what's the best way to maximize our retirement?
I am thinking to keep maximize my 403b, and Roth IRA is that's possible for myself.
For my wife, keep saving $6,000 into her traditional IRA (if roth is not allowed ) and open a sep IRA for her if our LLC could generate more income.

any suggestions and answers would be appreciated.
Thanks!
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If my income MAGI is below that's say $196,000, could I still save money $6,000 into roth IRA? Even I already maximize my work retirement account (403b), and I saved $6000 into my wife's traditional IRA account?

Yes. That you contribute to a retirement plan at work has nothing to do with contributing to your IRA, traditional or Roth.

If my MAGI is above $206,000, could I do a back door IRA?

Yes. But keep in mind, if you currently have a TIRA, you must take the entire TIRA value into account when determining how much of the Roth conversion amount must be included as ordinary income. Its best to do a 'back door' Roth conversion when you have no TIRA.

If I understand right, I have a work retirement account and MAGI is more than $124,000,I can't even save money into traditional IRA so back door IRA won't be an optional for me.

No. The $124,000 amount is the adjusted gross income amount that if you exceed it AND you have a retirement plan at work you will lose the ability to deduct your TIRA contribution, but you can still make the contribution, its just not deductible. There is no AGI limit on making a TIRA contribtuion. And if you make such a non-deductible contribution, you must complete and file a form 8806 that cumulatively tracks your TIRA basis...or total of past years after tax contributions.

Will that be a point, I couldn't save anymore for my wife's traditional IRA account? (such as income goes beyond a range)

No. As I said above, there is NO AGI max for making a TIRA contribution. Bill Gates may contribute to his TIRA if he so wishes.

Yes, you've outlined your tax deferred (or tax free for a Roth) savings options. But let me offer a couple of ideas, having retired from this industry.

I would not contribute to a 403(b). These things, like 457(b)s, are regulated by the states, not by Federal Law (ERISA). They tend to be run by insurance companies and so usually offer as investments only expensive insurance products and they are almost impossible to analyze for expenses...and this is not by accident.

If maximizing retirement contributions is your goal, I'd max out IRAs, do a SEP IRA for spouses schedule C income (it won't be much at a gross of $K per year) and then I'd set up a joint brokerage account and save to it. Yes, this is not tax deferred, but by choosing tax efficient and ultra low expense ETFs for your investments with all dividends being qualified (taxed at lower rate), you can do almost as well as an IRA and likely much better than a 403(b) over the years.

You might want to read my book on IRAs. https://www.amazon.com/IRA-Quick-Reference-Guide-2017-ebook/...

BruceM
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