For Texas Instruments employees nearing retirement, tools like spousal IRAs and backdoor Roth conversions can increase retirement savings flexibility - but planning ahead can prevent tax surprises - said Wesley Boudreaux, of The Retirement Group, a division of The Retirement Group.

'Texas Instruments professionals should optimize their IRA contributions now that the Estate Tax Exemptions are changing,' said Michael Corgiat, a representative of The Retirement Group, a division of The Retirement Group.

In this article, we will discuss:

1. Contribution limits and income thresholds for IRAs.

2. Spousal IRA benefits & strategies.

3. Top tax considerations and planning for high earners: the pro-rata rule and Roth conversions.

Individual Retirement Accounts are a major component of retirement planning and provide many tax advantages. But understanding IRA contributions in the context of income limits helps Texas Instruments professionals plan for retirement.

Understanding IRA Contribution Limits

For those planning a retirement, IRA contributions are capped annually. Such limits are recalculated periodically for inflation and other economic factors. For example, the standard IRA contribution limit was USD 6,500 in 2023 (USD 7,000 for those 50 and older), rising to USD 7,000 (USD 8,000 for those 50 and older) starting in 2024 -- levels that remain in place through 2026.

IRA Income Thresholds for Contributions.

Whether you can contribute directly to a Roth IRA or receive a tax deduction on a traditional IRA contribution is determined by your income. Those thresholds may impose restrictions on high earners. As of 2026, a married couple filing jointly must earn less than USD 242,000 a year for full Roth IRA contributions, with contributions phasing out completely at USD 252,000 -- thresholds that are adjusted annually for inflation.

But fewer know that there's also an income floor for IRA contributions. Your earned income must at least match your IRA contribution. Especially true for those with lower earned income due to retirement or reduced hours.

The Spousal IRA: An Advantage for Couples

The spousal IRA provision is useful for married couples when one partner has little or no earned income. This rule doubles the IRA contribution potential of a spouse with enough earned income to contribute to an IRA in the name of the non-earning spouse. This is a plus for couples where one partner is retired or unemployed.

High-Income Couples: Navigating Roth IRA Contributions

High earners may be limited in contributing directly to a Roth IRA or receiving tax deductions for traditional IRA contributions. Here is where a spousal backdoor Roth IRA comes in handy. They let top earners go around those limits by first contributing to a non-deductible traditional IRA and then converting it to a Roth IRA.

Pro-Rata Rule and Tax Considerations for Texas Instruments Professionals.

Know the pro-rata rule of the IRS for backdoor Roth IRA conversions. The proportion of pre-tax versus after-tax money in your IRAs may cause a tax bill during the conversion process. Know the tax consequences of a spousal backdoor Roth IRA and plan for them accordingly.

Evaluate whether additional savings are needed.

Although maximizing IRA contributions can be a great strategy, you still should consider whether additional savings are needed. When you and your spouse contribute to employer-sponsored retirement plans, additional IRA contributions may outweigh other financial goals and needs.

Diversifying Retirement Income

Spousal IRAs help diversify your retirement income sources. For instance, if most of your retirement savings are currently invested in pre-tax accounts like 401(k)s, contributing to a Roth IRA can earn you tax-free income in retirement while giving you more freedom with your retirement planning.

Spousal IRA Contributions - Making the Decision.

If one partner has little earned income, a spousal IRA may be a way to increase retirement savings. Particularly if traditional IRA deductions are not possible or if direct Roth contributions are capped by income. In such situations, the backdoor Roth method is an option.

Using IRA contributions wisely, including understanding spousal IRAs and backdoor Roth IRAs, is critical to retirement savings. And this is particularly true for people transitioning to retirement or who are already retired - matching savings to present income levels and goals for the future. Keep up with these retirement savings tools and review your finances often.

For Texas Instruments professionals over age 60 and especially those with substantial assets, knowing the current Estate Tax Landscape is critical. The federal estate tax exemption was permanently extended by the One Big Beautiful Bill Act, signed As of 2026, and stands at $15 million per person -- or $30 million for a couple -- as of 2026. This exemption is no longer subject to a sunset provision and will be indexed for inflation beginning in 2027. Large estates should still consider strategic gifting and trust planning to make the most of these elevated thresholds.

A yacht sailing through shifting tides and currents is similar to handling IRA contributions and estate taxes. Like a sailor who knows the sea to navigate, Texas Instruments professionals approaching retirement or retired must understand IRA limits, spousal IRA rules, and how estate tax exemptions are changing. Much like how the tides change direction on a yacht, changing tax laws and IRA regulations can change the direction of one's course toward a secure and prosperous Texas Instruments retirement.

That same shift from growing assets to drawing them down applies directly to the pension decisions in front of you at Texas Instruments. Texas Instruments has frozen its defined benefit pension to new accruals, meaning your benefit is based on service and compensation accumulated up to the freeze date - but the value already locked in remains a meaningful asset worth analyzing. If a lump sum option is available, IRS segment rates in effect during the plan's lookback period directly affect the present value calculation; rising rates reduce the lump sum amount, so the rate environment at your retirement date matters. Understanding the annuity equivalent of your frozen benefit and comparing it to a potential lump sum is an important step in sequencing your retirement income from multiple sources.

On the healthcare side, Texas Instruments provides continued medical coverage to eligible retirees, which can bridge the gap between retirement and Medicare eligibility at age 65 or serve as a supplement to Medicare thereafter. Confirming the service and age requirements for retiree coverage, and understanding your premium contribution, is an important step in building an accurate healthcare cost projection. Coordinating Texas Instruments's retiree coverage with Medicare Part B and Part D enrollment timing can also reduce duplication and avoid late-enrollment penalties. Connecting your specific Texas Instruments benefits situation to a comprehensive retirement income plan - and understanding how each component interacts - gives you the most complete picture of what retirement will look like.

Sources:

1. Saunders, Laura. 'Your Guide to Taxes for Retirees and Retirement Accounts.'  The Wall Street Journal , 20 Feb. 2025, pp. 1-3.

2. 'Retirement Topics - IRA Contribution Limits.'  Internal Revenue Service , Aug. 2024,  www.irs.gov/retirement-plans/plan-participant-employee/ira-contribution-limits .

3. Chen, James. 'Backdoor Roth IRA: Advantages and Tax Implications Explained.'  Investopedia , 15   www.investopedia.com/articles/retirement/051515/backdoor-roth-ira-advantages-and-tax-implications-explained.asp .

4. Smith, John. 'The Spousal IRA.'  The FI Tax Guy , Jan. 2024,  www.fitaxguy.com/spousal-ira .