Hi everyone,
Long time reader and philosophy-follower. I have a very tactical question--we've done quite well at savings so far, but I'm starting to worry about over-saving in my 401k. Separately, in the last 2 years, my wife has started her own business, in which she has recently opened a Solo 401(k).
We don't have access to enough funds to max my employer 401(k) and also max her Solo 401(k), but I'm wondering if a reasonable way to continue savings in tax-advantaged accounts, while minimizing RMD risk, is to reduce my 401k savings to just enough to earn my company match, and shift additional 401k savings over to her Solo 401k, since she is new to retirement savings. As she is a sole proprietor, I think doing this is tax-neutral, with the benefit of reducing the balance in my individual account for future RMD purposes.
**Key data**
Ages: mid 40s
HHI: approx. $450k
Traditional 401k balance (mine): $1.3M
Traditional 401k balance (spouse): effectively zero
Roth IRA (mine): $500k
Taxable brokerage: $1.2M
Spouse will also receive a pension in full retirement, details of which I don't have handy, but probably roughly equivalent to social security.