When it comes to retirement savings, high earners face unique challenges and opportunities. Deciding between pre-tax traditional IRAs/401(k)s and post-tax Roth IRAs/401(k)s is not a one-size-fits-all decision. A well-thought-out strategy tailored to individual circumstances can make a significant difference in retirement outcomes. There are several key considerations for you to make, and your answers can help guide your decision-making process.
Classic deductible IRA and Roth IRA contributions can be out of reach for high earners with workplace retirement plans such as a 401(k)/403b/457s. Married couples filing taxes together are ineligible for 2025 deductible IRA contributions with modified adjusted gross incomes (MAGI) over $146,000. Roth IRA contributions ignore workplace retirement plan involvement, but those married filing jointly become ineligible with MAGI over $246,000.
