Anonymous
09/26/2013 10:35
Subject: Families with one SAHP - How do you save for retirement?
Retirement savings and Tax shelters for the one-income family:
One 401k ($17,500)*
Two IRAS ($10,000)
I-Bonds ($20,000+$5,000 from your return if you over-withhold)
529s (not sure of limits)
Overpaying Mortgage (see "negative bond")
*some companies allow after tax 401k contributions, giving up to $32k in extra space. Why do that? When you leave your company, those funds can be rolled over to a Roth IRA. Some companies even allow in-service withdrawals of these monies which allows you to roll them over as you go along. Not a common confluence of events, but plans like this do exist. It's well worth checking in to.
One 401k ($17,500)*
Two IRAS ($10,000)
I-Bonds ($20,000+$5,000 from your return if you over-withhold)
529s (not sure of limits)
Overpaying Mortgage (see "negative bond")
*some companies allow after tax 401k contributions, giving up to $32k in extra space. Why do that? When you leave your company, those funds can be rolled over to a Roth IRA. Some companies even allow in-service withdrawals of these monies which allows you to roll them over as you go along. Not a common confluence of events, but plans like this do exist. It's well worth checking in to.
Anonymous
09/26/2013 10:23
Subject: Families with one SAHP - How do you save for retirement?
Anonymous wrote:I don't understand how it works. DH and I max out out 401ks. So as a family we out away $35k per year plus employee matches. If one of us were to stay home, how much could we contribute to a Roth or IRA? Is there a cap like the 401ks?
I think the cap is on the tax savings. You can put more in, but it's not deductible (similar to 529 accounts).
Anonymous
09/26/2013 10:09
Subject: Families with one SAHP - How do you save for retirement?
I don't understand how it works. DH and I max out out 401ks. So as a family we out away $35k per year plus employee matches. If one of us were to stay home, how much could we contribute to a Roth or IRA? Is there a cap like the 401ks?
Anonymous
09/26/2013 09:57
Subject: Families with one SAHP - How do you save for retirement?
We max out my husbands and when we can we do a Roth for me.
Anonymous
09/26/2013 09:16
Subject: Families with one SAHP - How do you save for retirement?
Roth IRA. No impulse shopping.
Anonymous
09/26/2013 09:06
Subject: Families with one SAHP - How do you save for retirement?
Thanks all! Was looking more for instrument, and guess maxing out working spouse 401k, and then contributing to Ira. Thanks for the info on th Roth for a non working spouse!
Anonymous
09/26/2013 08:54
Subject: Families with one SAHP - How do you save for retirement?
Anonymous wrote:Our family just decided to have one parent become a SAHP after years of working, and having built up a healthy 401K/retirement account. Outside of missing the salary, we are really going to miss the ability to save so much for retirement. It will likely be a temporary situation, as I plan to go back to work at some point within 5 years. We will continue to fully max out DH 401k. How do others continue to save for retirement for the SAHP?
Please no flaming remarks regarding SAH parenting - our family understands the financial and re-entry into the workforce challenges, but made this decision based on what is best for our DC, one with some special needs.
We max out DH's 401k and max out IRAs.
Anonymous
09/26/2013 08:43
Subject: Families with one SAHP - How do you save for retirement?
Retirement is a fantasy and laziness
Anonymous
09/26/2013 08:17
Subject: Families with one SAHP - How do you save for retirement?
Anonymous wrote:There is an exception that allows Roth accounts for nonworking spouses. If you and your spouse file a joint return but one does not work, the employed spouse can open and contribute to a Roth IRA for the unemployed partner.
Read more: http://www.bankrate.com/finance/money-guides/roth-ira-rules8-121119.aspx#ixzz2g03dbHBv
Small correction here. The non working spouse opens the IRA using the partners income.
Anonymous
09/26/2013 08:14
Subject: Families with one SAHP - How do you save for retirement?
Frankly, through sacrifice. Lots of camping vacations, holding on to cars til they die, and never buying anything brand new unless it's completely unavoidable.
The best advice I can give is to make sure those 401k and IRA contributions keep coming right off the top so you don't "see" the money. Don't forget about spousal IRAs for the SAHP. If you have traditional IRAs, look into whether Roth conversions could be beneficial while income is lowered.
Personally, if possible, I'd stop any current college savings and direct those funds into Roths, I Bonds, or additional mortgage payments until you're back on two incomes.
The best advice I can give is to make sure those 401k and IRA contributions keep coming right off the top so you don't "see" the money. Don't forget about spousal IRAs for the SAHP. If you have traditional IRAs, look into whether Roth conversions could be beneficial while income is lowered.
Personally, if possible, I'd stop any current college savings and direct those funds into Roths, I Bonds, or additional mortgage payments until you're back on two incomes.
Anonymous
09/26/2013 08:12
Subject: Families with one SAHP - How do you save for retirement?
Do you mean how, like what instrument? Or how, like how to save the money? If the latter, it should have been considered in your overall plan to stay at home. You factor it in like any other expense.
Anonymous
09/26/2013 08:09
Subject: Families with one SAHP - How do you save for retirement?
There is an exception that allows Roth accounts for nonworking spouses. If you and your spouse file a joint return but one does not work, the employed spouse can open and contribute to a Roth IRA for the unemployed partner.
Read more: http://www.bankrate.com/finance/money-guides/roth-ira-rules8-121119.aspx#ixzz2g03dbHBv
Read more: http://www.bankrate.com/finance/money-guides/roth-ira-rules8-121119.aspx#ixzz2g03dbHBv
Anonymous
09/26/2013 08:06
Subject: Families with one SAHP - How do you save for retirement?
We max out DH's 401(k) and contribute to my IRA when we can.
Anonymous
09/26/2013 08:05
Subject: Re:Families with one SAHP - How do you save for retirement?
When I quit we upped my husbands 401K contribution from 10 percent to 20. The take home hit was hard to swallow but we are still under 30 and didnt want to loose these "building years".
Anonymous
09/26/2013 08:04
Subject: Families with one SAHP - How do you save for retirement?
Our family just decided to have one parent become a SAHP after years of working, and having built up a healthy 401K/retirement account. Outside of missing the salary, we are really going to miss the ability to save so much for retirement. It will likely be a temporary situation, as I plan to go back to work at some point within 5 years. We will continue to fully max out DH 401k. How do others continue to save for retirement for the SAHP?
Please no flaming remarks regarding SAH parenting - our family understands the financial and re-entry into the workforce challenges, but made this decision based on what is best for our DC, one with some special needs.
Please no flaming remarks regarding SAH parenting - our family understands the financial and re-entry into the workforce challenges, but made this decision based on what is best for our DC, one with some special needs.