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If you’re a high-income earner, you’ve probably been told you can’t contribute to a Roth IRA.

That’s… not entirely true.

While there are income limits for contributing directly, there’s also legal, IRS‑approved workarounds that could let you potentially fund tens of thousands into a Roth every year (regardless of income).

Why Do People Even Bother with a Roth?

Let’s start with the basics. A Roth IRA can give you:

• Tax-free growth

• Tax-free withdrawals in retirement

• Access to contributions at almost anytime

• No required minimum distributions (RMDs)

That rare combo is likely why Roth accounts are viewed as being so valuable (especially for people who want to hedge against rising tax rates).

Now that you’ve got the basics, here are 4 strategies high earners can use to fund a Roth…

Strategy 1: The Backdoor Roth IRA

This one’s simple in theory, but can also be easy to mess up.

How it works:

1. Contribute $7,000 to a Traditional IRA (non-deductible).

2. Convert that IRA to a Roth IRA.

3. Done.

BUT— you must have zero pre-tax IRA dollars across all accounts. Otherwise, the IRS will pro-rate the taxes, and you could owe a lot more than expected.

Pro tip: You can consider rolling pre-tax IRA funds into a 401k or Solo 401k first to avoid this.

Strategy 2: Roth 401k Contributions

High income? No problem.

There’s no income limit on Roth 401k contributions.

If your employer (or Solo 401k provider) allows it, for 2025 you can contribute up to:

• $23,500/year if under 50

• $30,500/year if 50-60

• $34,750/year if you’re 60 to 63

And when you leave your job? You can roll that Roth 401k into your Roth IRA, tax-free.

Strategy 3: Roth Conversions

Say you have a lower-income year (e.g. sabbatical, layoff, business dip, etc.).

That can be a strategic time to consider converting some of your pre-tax retirement savings into a Roth.

You’ll pay income tax on the amount converted, but typically at a much lower rate than usual.

Strategy 4: The Mega Backdoor Roth

This one sounds made-up. It’s not.

With the Mega Backdoor Roth, you can contribute up to $70,000/year (2025 limit) to a Roth IRA.

Here’s how it works:

1. Use a 401k plan (yours or your employer’s) that allows after-tax contributions.

2. Make optional after-tax contributions above your normal limit.

3. Immediately convert those to a Roth IRA.

The key? Most people do this before the funds generate taxable growth.

Bonus: Roth IRAs for Your Family

Roth strategies don’t end with you. Here are some other strategies to consider:

• Spouses: If your partner doesn’t earn income, you can still contribute $7,000/year for them via a spousal Roth IRA.
  

• Kids: Have a business? You can hire your children, pay them a fair wage, and fund a custodial Roth IRA for them!

Final Thoughts

Roth IRAs aren’t just for moderate incomes. With the right plays, they could be your secret weapon for long-term, tax-free wealth, even at six figures.

Want to learn about even more tax-saving strategies? We’re hosting a free online workshop today (2pm ET / 11am PT). Click here to join us (we’ll also send a recording if you RSVP but can’t make it live).

What’s Happening at Carry Lab?

Here’s what you can expect in the coming weeks

See the full list of events here. ⏰

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If you want more resources on building wealth as a solopreneur/entrepreneur, check these out:

• The Solo 401k handbook

• The Roth IRA handbook

• The Self-Directed IRA handbook

• The Guide to Paying Less in Taxes

• What is a Solo 401k?

• How to Open a Solo 401k