Message Font: Serif | Sans-Serif
No. of Recommendations: 3
Then I suggest you go back and look again at that link since you seem to be leaving a lot of money on the table here.

Bears repeating.

With a Traditional IRA, which seems to be what your wife is contributing to, she can only contribute $18,000 plus another $6000 catch-up contribution for being over 50 years old for a total of $24,000 that can be contributed.

Sorry, you are giving the limits for a 401(k) contribution, not a Traditional IRA. The Traditional IRA limits for 2018 are $5,500 plus a $1,000 catch up contribution if 50 or older. If there was enough joint earned income, this could have been contributed as a spousal IRA, and the wife's income could have been contributed to another type of retirement plan, as described in the Fidelity link.

But if she had one of the self-employment plans referenced, she could also put in an employer match to bring her total contribution up to $55,000. That's another $31,000 of contribution she could make.

Subject to the deductibility limit of the employer being able to contribute up to 25% of compensation/20% of net income limit.

As you seem to not be taking advantage of that extra amount, I would highly recommend that you look at that again.

I would second this suggestion.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.