Hi All,
Long time (about 6-months) reader but first time poster. Thanks to everyone for all of the great information being shared. I've learned a ton on this forum.
My situation is:
My wife and I are both currently employed. My salary is about $96K, with about $10K bonus, my wife is employed with about $110 salary and $10K bonus. I have access to a 401(k) which I currently (almost) max out. I also did a back door Roth IRA contribution this year since, based on my understanding, our combined income of over $200K puts us above the income limits for Roth 401(k) contributions. My wife does not currently have access to a 401(k), since she works for basically a start up with only 2 U.S. based employees. Based on our income, I believe she is not eligible to contribute to either a deductible traditional IRA or a Roth IRA. Also, she currently has both a Roth IRA and a traditional IRA (deductible) from before we were married and her old job (she rolled her old 401(k) into a trad. IRA). From what I've read, this makes the back door IRA not particularly useful for her since having a non-deductible IRA sort of makes the backdoor Roth not a good option (see the caveat on the Bogleheads forum for what I'm referring to).
Does anyone have any suggestions for what we can do to fund her retirement account(s) in a tax-efficient way?
I do apologize if this question has already been answered in a prior MMM post or forum, but I haven't seen anything that addresses this particular issue. I have looked into Spousal IRA options but I believe this is really for a situation where only 1 person is working and the other either doesn't work or has a very low income which is not the case for us.
Thanks for taking the time.