You are saving about $200,000 of gross income and yet your taxable income is under $223,000, so your gross income is under about $300,000. That's pretty impressive. A 70% saving rate and you already have more than a million at age 31. I don't know much about SEP's but shouldn't you be able to put $50,000 in there and $5,500 more in a back door Roth IRA for her?MartyMcFly wrote:Tax Rate: 28% Federal, 5.75% State
Total portfolio size hint: low seven-figures
New annual Contributions
$40k his SEP-IRA
$100k taxable (for retirement, not short term goals)
MartyMcFly wrote:Hey Bob's_not_my_name, yes, I could be making up to about $50k in contributions to the SEP-IRA per year, but I only contribute the amount that is deductible from my federal income taxes. This way, I'm not paying tax on the money twice.
MartyMcFly wrote:Also, thank you for the backdoor Roth IRA idea. This is the first I've read about the backdoor "loophole". Looks like I picked a good year to file an extension, as I should be able to still make a 2012 contribution to this account.
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