Amywhere Else to Stash Savings in a Non-Tax Account - Trying to Reduce Taxes

[riverotter]

I am trying to do everything I can to limit my tax bill for 2014.  It was a good year(I am self-employed) and my wife and I had combined income of $350K.  I am attempting to get as much as I can in non-taxed accounts. 

I am self employed and I have maxed out a Solo 401k.  My wife was employed through June and was contributing to a 401k, but then switched jobs and cannot enroll in her new employer's 401K until her 1 year anniversary.  We make too much for a Roth or a traditional IRA.  I was thinking that MAYBE we could kick in $5500 into an IRA for her, but that depends on whether or not her previous employer's 401K counts as her being covered at work or not.

1) Anyone know how that works where someone is covered under an employer plan for a partial year?
2) Any other bright ideas where I can sock away money and not get destroyed tax wise?

[GGNoob]

Do a backdoor Roth IRA for yourself and if your wife isn't eligible for a deductible Traditional IRA, do a backdoor Roth IRA for her as well. To do this, you would contribute to a non-deductible Traditional IRA and then immediately convert it to a Roth IRA.

Are you eligible for an HSA? http://healthsavings.com/who-is-eligible-for-an-hsa/

[seattlecyclone]

Since 2014 is over, you really don't have many options for retroactively changing your 2014 income. IRAs are the only way I know of.

Going forward, 401(k) plans and HSAs are great options as well.

[riverotter]

I have maxed out the HSA. 

Seattle - You can contribute for 2014 until April 15th of the following year.

Logan - Correct me if I am wrong, but that doesn't really help lower the income taxes correct?  I have looked at doing a backdoor Roth, but it seems to me it doesn't make much sense to do it this year given my tax bracket.  I will likely be in a lower tax bracket in 2015 and 2016 so it seems to me I would be better serve to do a backdoor in those years.

[GGNoob]

I have maxed out the HSA. 

Seattle - You can contribute for 2014 until April 15th of the following year.

Logan - Correct me if I am wrong, but that doesn't really help lower the income taxes correct?  I have looked at doing a backdoor Roth, but it seems to me it doesn't make much sense to do it this year given my tax bracket.  I will likely be in a lower tax bracket in 2015 and 2016 so it seems to me I would be better serve to do a backdoor in those years.

You're right that it won't lower your taxes for 2014. But once April 15 passes, you can never again contribute that $5,500 to a Roth IRA. Getting it in the Roth allows it to grow tax free and be tax free upon retirement. It's much better than just tossing it into a taxable account.

You're only option to lower your taxable income would be if your wife was eligible for a deductible traditional IRA (I don't know the answer to this one) or if you were eligible for an HSA.