Thanks for writing. I’m glad you’re looking for ways to boost your retirement savings.
Not everyone realizes it, but just because you have a 401(k) at work does not mean you’re restricted from having an IRA, a Roth IRA, or other investment accounts. Your options for saving and investing can go well beyond your employer-sponsored 401(k).1
Let’s start with traditional IRAs, which generally allow for tax-deductible contributions, tax-deferred growth, and taxable income once you start withdrawing funds later in life. For Traditional IRAs, there are no income restrictions to contribute, so no matter how much you earn, you can open an IRA. The issue is whether or not your contributions are tax deductible or not.
Creating a retirement portfolio that meets your financial requirements and can withstand any market can take a lot of work.
That is why I’ve created an exclusive guide that gives insight into the secrets of successful retirement portfolios, including the right way to set your goals and retirement needs, as well as the key basics of disciplined investing based on our decades of experience. You’ll also get details on key investment planning for your retirement, including:
How to accurately establish your retirement income needs
The two phases of determining your asset allocation
Developing an investment discipline that allows you to get good results over time
Investing rules to help you avoid self-sabotage
Plus, our views on key steps to create and maintain the ultimate retirement portfolio
For tax deductibility, the income limits are relatively low:
Single: $83,000 or more means no deduction.
Married filing jointly: $136,000 means no deduction.
Not being able to deduct your contributions is certainly a downside, but it should not necessarily be a reason to avoid the vehicle altogether. Tax-deferred growth is still on the table, and at the very least, it’s another place to sock away money.
Next are Roth IRAs, which feature after-tax contributions, tax-deferred growth, and tax-free withdrawals. The one asterisk with Roth IRAs, however, is that there are restrictions on how much you can contribute based on your income level. If you’re a high-income household, you may not be able to access Roth IRAs, as seen in the table below3:
Tax Filing Status
Income Level
Roth IRA Contribution Allowance
Single or Married Filing Separately
Less than $138,000
$6,500 ($7,500 if 50 or older)
More than $138,000, but less than $153,000
Contribution is reduced on sliding scale
More than $153,000
No contribution allowed
Married Filing Jointly
Less than $218,000
$6,500 ($7,500 if 50 or older)
More than $218,000, but less than $228,000
Contribution is reduced
$228,000 or more
No contribution allowed
A final idea for socking away money is a taxable brokerage account. While no tax deductions or tax-deferred growth are associated with these accounts, they are subject to capital gains tax rates, which are currently lower than income tax rates. They also offer additional liquidity, i.e., you can make withdrawals if need be before you retire, without penalty.
One key benefit of having different accounts besides your 401(k) – apart from saving more! – is that you will typically have access to a greater universe of investment options, some of which may be more cost-effective than your 401(k). To keep costs contained and offer simplicity, employer-sponsored plans tend to have limited investment choices. This may limit your ability to customize your investments and align them tightly with your goals and risk tolerance, something you could potentially accomplish with your additional investment accounts.
To help you create a retirement investment plan that can withstand any market, and potentially help you achieve your goals, I recommend reading our guide, 7 Secrets to Building the Ultimate DIY Retirement Portfolio.4 This guide will explain investing basics and give insight into the right tools to help set up the portfolio that meets your retirement goals.
If you have $500,000 or more to invest, get this guide to learn our ideas on the step-by-step process of building and maintaining a retirement portfolio that will potentially help you reach your goals and enjoy a secure retirement.
1 Wall Street Journal. June 4, 2023. https://www.wsj.com/articles/ira-separate-from-work-401k-2d7c0595?mod=Searchresults_pos1&page=1
2 ZIM may amend or rescind the guide “How to Build Your Ultimate Retirement Portfolio” for any reason and at ZIM’s discretion.
3 Nerd Wallet. April 20, 2023. https://www.nerdwallet.com/article/investing/ira-contribution-limits#:~:text=Traditional%20IRA,-You%20can%20contribute&text=There%20are%20no%20income%20restrictions,deductible%20depending%20on%20your%20income
4 ZIM may amend or rescind the guide “How to Build Your Ultimate Retirement Portfolio” for any reason and at ZIM’s discretion.
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