I am a teacher and I can afford to save my entire salary because my husband’s salary covers all of our expenses? How much can I contribute to my 403b?

A 403b is a retirement plan offered through public schools and certain charities. It works very similarly to a 401k plan. In this situation, it would be wise for this teacher to put away the maximum allowable salary deferral. The maximum allowable deferral for 2014 was the lesser of 100% of compensation or $17,500. For 2015 that number jumps to $18,000 and will adjust going forward for cost of living increases. This particular individual’s compensation is $50,000 annually. The question is where else can she put money to save toward retirement? This really depends on the joint income of her and her spouse. If their joint Adjustable Gross Income is under $181,000, she will be able to make a maximum contribution to a ROTH IRA. If their joint income is over $181,000 the amount she can contribute to a ROTH fazes out completely once their AGI is over $191,000. The maximum contribution for 2014 for a ROTH IRA is $5500 if you are under age 50. If you are over age 50 you can contribute $6500 per the catch-up rule. The same contribution limit is in place for 2015. The other option is to set up an investment account and make monthly contributions. Many people think just because they have their retirement accounts in place that they don’t need to put other money away. Setting up regular investment accounts is easy and over the long term can be just as tax-efficient as utilizing retirement plans through work. The ROTH is by far the most advantageous retirement vehicle to save through as it grows tax-free.