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Maxed out your 401(k)? How to save more July 08, 2013 ET New York (Money Magazine) -- My 401(k) contribution has been capped at 6%. How do I save more for retirement? -- Frankie L., Arlington, Va. As you've found, the IRS limits 401(k) contributions by high earners -- chiefly those who earned more than $115,000 in 2012 -- unless their company ensures that lower-paid workers are also saving for retirement. Start by putting $5,500 ($6,500 if you're at least 50 by year-end) into a Roth IRA, which offers tax-free withdrawals in retirement, says Moline, III., financial planner Marty Kurtz. In 2013 your allowed contribution falls to zero if your income tops $188,000 ($127,000 if you're single), but anyone under 70½ with earnings can fund a nondeductible IRA and then convert it to a Roth. But you may owe taxes on this back-door deposit if you have other traditional IRAs. Then buy low-fee, tax-efficient funds in a taxable account, says Kurtz. Index funds work well; their infrequent trading minimizes taxable gains.	Sign up News Breaking Financial News Be the first to know when there is breaking financial news with timely alerts delivered straight to your inbox. Markets Captain's Blog FORTUNE managing editor Andy Serwer keeps tabs on Wall Street. Market Wrap A complete roundup of each day's trading activity. Morning Markets Today's trading: What you need to know. The Term Sheet Receive Fortune's newsletter on all the deals that matter, from Wall Street to Sand Hill Road. Technology Apple 2.0 Fortune's Philip Elmer-DeWitt brings you Mac news from outside the reality distortion field. Big Tech Fortune's Michal Lev-Ram covers the digital giants. Careers Ask Annie Mondays Anne Fisher answers career-related questions and offers helpful advice for business professionals. Postcards Fortune editor at large Pattie Sellers shares fascinating, fun and valuable insights into people who sit at the pinnacle of power. Personal Finance The Help Desk Tips for saving and spending smarter. Ask the Expert Our readers toughest market questions answered every Friday.
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