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.
|Initial amount||Value, net of taxes, of contribution invested for 30 years|
|Roth IRA||$3,750 (after tax)||$28,500|
|Taxable account||$3,750 (after tax)||$22,400|
|American Airlines, US Airways to form largest air carrier Monday|
|Tech firms call on U.S. to reform spying activities|
|America's economic mobility myth|
|2 million Facebook, Gmail and Twitter passwords stolen in massive hack|
|Premarkets: Stocks set for firm start on economy optimism|
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||4.48%||4.38%|
|15 yr fixed||3.49%||3.42%|
|30 yr refi||4.47%||4.37%|
|15 yr refi||3.48%||3.41%|
Today's featured rates: