Roth or Traditional: Considerations for High Earners

The higher your income, the more complicated the options. Generally, deductible IRA and Roth IRA contributions aren't permitted if you have a 401(k)/403(b)/457 retirement savings plan at work.

Individuals with modified adjusted gross income (MAGI) $89,000 and over and married couples filing jointly with MAGI $146,000 and over (in 2025) can't make deductible contributions to a traditional IRA. Roth IRA contributions ignore workplace retirement plans, but singles and those married filing jointly become ineligible with MAGI of $165,000 and $246,000 (respectively for 2025) or more. But if your employer's plan lets you choose between a traditional or Roth employee retirement savings plan, these contributions aren't subject to any income limitations. So how do you choose? Here are some things to consider with your trusted professional.

• Your current and future tax situation


• Nonretirement investments


• A Roth conversion if you're nearing retirement


• Splitting retirement plan contributions between traditional and Roth accounts


• Starting this year, high-income retirement plan savers over 50 years old must make any employee deferral catch-up contributions as a Roth contribution