High earners often think Roth IRAs are off-limits – but that’s not the case. Two strategies can still get money into Roth accounts:
✅ The Backdoor Roth – contribute to a Traditional IRA, then move it into a Roth IRA.
✅ The Mega-Backdoor Roth – make after-tax contributions in a 401(k), then roll them into Roth.
Key Limits
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2025: IRA deferral $23,000 ($7,500 catch-up at 50+). 401(k) total cap $69,000 ($76,500 w/ catch-up).
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2026: IRA deferral $23,500 ($7,500 catch-up at 50+). 401(k) total cap $70,500 ($78,000 w/ catch-up).
The benefit: Roth accounts grow tax-free, withdrawals are tax-free, and there are no required distributions. For high earners, that flexibility in retirement is a game-changer.
