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  • Maurice Wilson

What to do if you make too much money for a Roth IRA

A solution for high income professionals. 

You're doing well and your pay check shows it, congratulations, but that doesn't mean you should be excluded from contributing to the best investment account out there - the Roth IRA. Roth IRAs grow your money tax free and give it back to you tax free. There's no other account, save for the Roth 401k, that does this. In my opinion, the tax free nature of Roth IRAs make them one of the best ways to build wealth!

It should be noted for compliance purposes that I'm not recommending that you exclusively use a Roth IRA because I think it's the best, nor am I explicitly recommending you use a Roth IRA.

Step 1:  Check the IRS Roth IRA Income Limits

It's important to find out if you do or do not qualify to make Roth IRA contributions. I took a screen shot of the IRS table and included it below, you can learn more by clicking this link to visit the IRS directly: IRS Link

If you find that you or you and your spouse are over the limits go to Step 2. If you find that you are under the limits, but have to contribute a reduced amount, I urge you to visit the IRS website directly to calculate your reduced amount.

Step 2:  Check if you have an existing Traditional/Rollover IRA with money in it

If you have a Traditional or Rollover IRA with money in it you can still put money in a Roth IRA, but you need to know a few things that can't be conveyed easily in a blog post. If this is your situation, call your financial advisor, CPA, or you can contact the advisors of Wilson Wealth.

If you don't have a funded Traditional or Rollover IRA, go to Step 3

Step 3:  Contribute to a Traditional IRA, but...

But don't make it a deductible contribution. You want to make a non-deductible contribution to the Traditional IRA. It's important to let the IRS know you've done this each year by completing a Form 8606 which can be found on the IRS website.

Step 4:  Do NOT buy anything in the Traditional IRA

Leave the contribution in cash. Period.

Step 5:  Convert each contribution to your Roth IRA

Every time you make a contribution to your Traditional IRA, convert it to your Roth IRA. Your brokerage firm (ex: TD Ameritrade) will have a form that allows you to do this.

Step 6:  Invest and enjoy your tax free returns

Congrats! You now have contributed money to your Roth IRA as a high income professional. The money you make on your contributions will be tax free IF you follow the rules for withdrawing money from a Roth IRA tax free.

If you want assistance in determining if you qualify for a Roth IRA and the process for making contributions to a Roth as a high income professional - contact us at and put "Roth IRA" in the subject line or visit us at

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