High Earners Still Have Roth Options

High earners can’t always contribute directly to Roth IRAs, but tax-free retirement income may still be possible. One option is a “backdoor Roth,” where after-tax dollars are contributed to a traditional IRA and then converted to a Roth.

However, things get more complex if you have pre-tax IRA funds. The IRS pro-rata rule can make part of the conversion taxable and add extra calculations.

That’s why Roth strategies should be part of a broader tax plan, like Keystone’s TRIPP® Process. Watch our video to learn more.