Robert & Lisa
Finance VP + Teacher · New York, NY · Age 48
Married Filing JointlyIncome: $700KCouples
“Earning $700K and had never set up a 401(k). Embarrassing.”
The Situation
$630K (Robert, VP at hedge fund) + $70K (Lisa, public school teacher)
NYC resident (city + state tax)
No retirement accounts set up beyond Lisa's 403(b)
Strategies Identified
1. 401(k) + Mega Backdoor Roth
IRC §401(k), §415(c)
$24,600
Robert maxes 401(k) ($23,500) + mega backdoor ($45,500 after-tax to Roth).
2. Backdoor Roth IRA (Both)
IRC §408A
$13,200
Both contribute $7,500 to Roth via backdoor. $15K/year into tax-free growth.
3. SALT + NYC PTE Election
IRC §164, NY PTE
$16,400
NY PTE election on Robert's advisory side income. Bypass SALT cap for state/city tax.
4. Teacher Deduction + 403(b) Max
IRC §62(a)(2)(D), §403(b)
$9,200
Lisa's $300 educator deduction + max 403(b) at $23,500. Double retirement shelter.
Tax Impact
Before
$266,000
→
After
$202,600
Annual Savings
$63,400
24% reduction
Action Steps
1
Enroll in employer 401(k) immediately (Robert)
2
Execute backdoor Roth for both spouses before April 15
3
File NY PTE election for Robert's advisory LLC
4
Max Lisa's 403(b) through payroll deduction
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