Terry Nelson photo

Terry Nelson, CFP®, ChFC®, CASL

 

Olmsted Financial Group

3428 Lakeridge Pl. N.W., Suite 120

Rochester, MN 55901

 

Phone:   507-281-1262

Cell:        507-250-3967

Fax:         507-281-9131

 

Email: Terry@OlmstedFinancialGroup.com

 

                                                       

 

January/February 2026

Roth or Traditional: Considerations for High Earners

Traditional IRA and Roth IRA text on a book isolated on office desk.

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

Previous

CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Securities and Advisory services offered through Geneos Wealth Management, Inc. Member FINRA/SIPC.
Olmsted Financial Group and LTM Marketing Solutions, LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Marketing Solutions, LLC, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.