DW makes nearly nothing!

[TheAnonOne]

DW pulls in around 40 to 44k a year, and this year we are maxing our HSA

Her company limits her 401k contributions to 12k a year (30% of salary) so this could have been even better!

Her paychecks are about $1600, but after her "maxed12k" 401k contributions, maxed hsa, and carrying all of our benefits she nets about $550 to $600 every two weeks!

Our HHI was 225k last year, mainly due to her benefits allowing me to stay lucrativly in the consulting world so shout out to an amazing woman, and her puny, badass paychecks!

[Dicey]

I'm living proof that it doesn't take a huge paycheck to FIRE. Spending less than you earn and investing the rest is the key to success.The math really is simple. Go, you (plural)!

[TheAnonOne]

I'm living proof that it doesn't take a huge paycheck to FIRE. Spending less than you earn and investing the rest is the key to success.The math really is simple. Go, you (plural)!

Awesome! We are barreling towards fire. Probably anywhere from 4 to 6 years yet. We will be early 30s with 1 to 1.25m

[CheapScholar]

My wife makes about 38K per year.  She maxes her 403b.  When she asked her HR staff to increase the amount 2 years ago they couldn't even wrap their minds around it.  Then my wife met with the free personal finance consultation guy provided to employees last year.  He looked at my wife's 403b election and was like "is this correct?!"

We both max and with employer matches we stash 49K per year in retirement accounts between us.  Once you have two people doing this, the savings escalate incredibly fast.  Not to mention the federal and state income taxes we avoided in the 25% marginal tax bracket.

[Metric Mouse]

I'm living proof that it doesn't take a huge paycheck to FIRE. Spending less than you earn and investing the rest is the key to success.The math really is simple. Go, you (plural)!

Awesome! We are barreling towards fire. Probably anywhere from 4 to 6 years yet. We will be early 30s with 1 to 1.25m

That is awesome! Good work. It'll probably come even faster than you imagine.

[Lindy]

That's awesome!  I make somewhere between $45-50k a year and my paychecks are about as tiny as your wife's.  I do live with my boyfriend, but we keep our finances separate. I'm able to max my 401k and IRA and put some money in my savings account.  It's a great feeling!

I think our HHI is around $110k.  Mr. Frugal Turtle also maxes out his 401k and IRA and saves whatever else he can.  Hoping to FIRE in about 10 years. 

[ChpBstrd]

Her company limits her 401k contributions to 12k a year (30% of salary) so this could have been even better!

You know, you could just set up an IRA at an online brokerage and shelter the remaining $6k from tax. You'll just have to do some stuff manually on your taxes, which is not hard.

Come to think of it, if you're going to do it with $6k, why not enjoy lower fees on the entire $18k! Just set up a direct deposit.

Also, what a dumb company policy. What need does that even address?

[TheAnonOne]

Her company limits her 401k contributions to 12k a year (30% of salary) so this could have been even better!

You know, you could just set up an IRA at an online brokerage and shelter the remaining $6k from tax. You'll just have to do some stuff manually on your taxes, which is not hard.

Come to think of it, if you're going to do it with $6k, why not enjoy lower fees on the entire $18k! Just set up a direct deposit.

Also, what a dumb company policy. What need does that even address?

We already max our IRAs as well. Are you saying she can deposit not only the 5500 ira limit but also the remaining 6k that she didn't put into her 401k?

[deeshen13]

I make ~$52,000/year and have managed to get my two week paychecks down to $10. I think it's so damn badass although few in the real world share my enthusiasm.

For those wondering, 18k 401(k) pre-tax; 22k 401(k) after-tax; 3.4k HSA; 8.6k taxes/benefits/etc.

[TheAnonOne]

I make ~$52,000/year and have managed to get my two week paychecks down to $10. I think it's so damn badass although few in the real world share my enthusiasm.

For those wondering, 18k 401(k) pre-tax; 22k 401(k) after-tax; 3.4k HSA; 8.6k taxes/benefits/etc.

Wow, that's insane! I didn't know you could push after tax money into the 401k. Why not just use a taxable account?

[ChpBstrd]

Her company limits her 401k contributions to 12k a year (30% of salary) so this could have been even better!

You know, you could just set up an IRA at an online brokerage and shelter the remaining $6k from tax. You'll just have to do some stuff manually on your taxes, which is not hard.

Come to think of it, if you're going to do it with $6k, why not enjoy lower fees on the entire $18k! Just set up a direct deposit.

Also, what a dumb company policy. What need does that even address?

We already max our IRAs as well. Are you saying she can deposit not only the 5500 ira limit but also the remaining 6k that she didn't put into her 401k?

I researched this question and it appears the answer is no! You can't just set up a "rollover IRA" account and contribute the difference under the $18k ceiling. That surprises me because you can contribute to multiple 401(k)s in a year, up to the combined total limit.

However, because you are a consultant, you *might* be able to set up a solo 401(k) and possibly include both you and your spouse. You'd have to dig into the details on her participation.

http://www.goodfinancialcents.com/solo-401k-contribution-limits-rules-plans/
https://www.irs.gov/retirement-plans/how-much-salary-can-you-defer-if-you-re-eligible-for-more-than-one-retirement-plan
https://www.irs.gov/retirement-plans/one-participant-401k-plans

[TheAnonOne]

Her company limits her 401k contributions to 12k a year (30% of salary) so this could have been even better!

You know, you could just set up an IRA at an online brokerage and shelter the remaining $6k from tax. You'll just have to do some stuff manually on your taxes, which is not hard.

Come to think of it, if you're going to do it with $6k, why not enjoy lower fees on the entire $18k! Just set up a direct deposit.

Also, what a dumb company policy. What need does that even address?

We already max our IRAs as well. Are you saying she can deposit not only the 5500 ira limit but also the remaining 6k that she didn't put into her 401k?

I researched this question and it appears the answer is no! You can't just set up a "rollover IRA" account and contribute the difference under the $18k ceiling. That surprises me because you can contribute to multiple 401(k)s in a year, up to the combined total limit.

However, because you are a consultant, you *might* be able to set up a solo 401(k) and possibly include both you and your spouse. You'd have to dig into the details on her participation.

http://www.goodfinancialcents.com/solo-401k-contribution-limits-rules-plans/
https://www.irs.gov/retirement-plans/how-much-salary-can-you-defer-if-you-re-eligible-for-more-than-one-retirement-plan
https://www.irs.gov/retirement-plans/one-participant-401k-plans

Yes, I could do that, though I have been too lazy to setup a s-corp and do all of the paperwork. So I just w2 through consulting firms. I should look into changing that.

[With This Herring]

I make ~$52,000/year and have managed to get my two week paychecks down to $10. I think it's so damn badass although few in the real world share my enthusiasm.

For those wondering, 18k 401(k) pre-tax; 22k 401(k) after-tax; 3.4k HSA; 8.6k taxes/benefits/etc.

Wow, that's insane! I didn't know you could push after tax money into the 401k. Why not just use a taxable account?

After-tax money in a traditional 401(k) is then rolled over to a Roth IRA, saving its earnings from taxation.  This is called a Mega Backdoor Roth (Bogleheads link).

*snip*

However, because you are a consultant, you *might* be able to set up a solo 401(k) and possibly include both you and your spouse. You'd have to dig into the details on her participation.

http://www.goodfinancialcents.com/solo-401k-contribution-limits-rules-plans/
https://www.irs.gov/retirement-plans/how-much-salary-can-you-defer-if-you-re-eligible-for-more-than-one-retirement-plan
https://www.irs.gov/retirement-plans/one-participant-401k-plans

Yes, I could do that, though I have been too lazy to setup a s-corp and do all of the paperwork. So I just w2 through consulting firms. I should look into changing that.

If you do become a self-employed consultant, make sure that you will be getting paid enough more per hour to make up for the extra tax burden of the employer side of payroll taxes plus any other benefits (401(k) match, disability insurance, life insurance, etc.) you were receiving.  The accountant who helps you with the S Corp tax return (separate from your personal return, and generating a K-1 that is used in your personal return) will be able to check your calculations for proposed changes in compensation.