My husband and I have a plan for his end-of-year bonus to supercharge our retirement savings

• I don't have a 401(k), so when my husband receives his bonus, we'll be maxing out my IRA contribution.
• Instead of using his annual bonus to splurge, we prefer to use it to plan for the future.

I'm a freelance writer, and I always feel like my retirement savings is falling short, especially since I don't have an employer-sponsored 401(k) with a match.

That's why, next year when my husband gets his bonus, we're using a good chunk of it to max out my IRA contribution for the year.

That way we won't have to worry about keeping up with monthly contributions, and I can focus on other long-term retirement goals, like contributing to my SEP IRA, maxing out our HSA, or putting some extra funds toward my kids' 529 college savings plans.

And after all, what's yours is mine in marriage, right? Here's how we're doing it, and why.

My retirement is complicated

Because I'm a freelancer, I don't have just one retirement account. I have a traditional IRA, which I opened five years ago when I left full-time employment to pursue a freelance writing and editing career. My annual contribution limits to that account for 2024 will be $7,000.

Since I'm self-employed, my financial advisor suggested that I open a SEP IRA, which has a much higher annual contribution limit — either 25% of my total compensation that year or $69,000 for 2024, whichever is less.

We also are enrolled in a high-deductible healthcare plan, which means we have an HSA. Normally used for approved medical expenses, HSAs are triple tax-advantaged accounts and the balance carries over year-to-year. Once you hit age 65, you can use the funds for anything, penalty-free.

That means you can use your HSA as a supplemental retirement savings account. I have two small kids and almost always spend those funds, but I'm hoping as my kids get older (and the emergency room trips decrease), I'll be able to do the same.

Bonuses can be tricky

Around 40% of private industry workers in the US get an annual bonus. While getting that cash infusion each year is a great thing for our finances, we've learned the hard way that not making concrete plans for that money is a big mistake.

That's why every year in January, my husband and I sit down and make a plan for what we play to use his bonus for. This year, it's paying down student loans, a few projects around the house, and yep, padding my retirement. Then once that money comes in, we'll know exactly where it's going. And for those that may argue that it's his money, we've always had joint finances and shared everything we make, so it's always been a non-issue for us.

Our bonus plan

Since we already have automatic bi-monthly contributions to our HSA and my husband has an employer-sponsored 401(k), we decided to focus on my traditional IRA next.

Since the annual contribution limit is $7,000 for 2024, we decided to contribute the maximum to my IRA once he receives his bonus. That means that the money will be invested and start earning returns at the start of the year, which will pay off more than monthly contributions in the long run.

Additionally, I'm a big fan of set-it-and-forget-it finances. This is the perfect example. I'm saving for retirement without even thinking about it. Plus, since that money comes from a bonus, we won't even miss it. And with the funds that we normally contribute to my IRA, we can allocate to other savings. Or maybe even something fun.

Finally, this plan will also help us save for college expenses. I left college with student debt — and I don't want that for my kids. One lump contribution to my IRA opens up funds for our boys' 529 college savings plans. While saving for retirement is my first priority, saving for my kids' college education is also important.