Income Too High for a Roth? Try These Alternatives

Roth IRAs offer tax-free earnings and withdrawals (so long as you're 59½ and have held the account for five years), making them a potentially valuable part of a broader investing and tax-planning strategy. Having both Roth and tax-deferred accounts can also help with tax diversification in retirement.

Unfortunately, income limits prevent high-earners from making direct contributions to Roth IRAs—though there are strategies for contributing indirectly to a Roth. To be eligible to contribute to a Roth IRA for 2026, your modified adjusted gross income (MAGI) must be under $168,000 for a single filer or $252,000 for joint filers.

If your income exceeds the Roth limits, consider these five alternatives to help boost your retirement savings.

Generally, making contributions to a traditional 401(k), 403(b), or other workplace retirement account is a good place to start saving for retirement. Pretax contributions to these accounts reduce your taxable income and potential earnings will grow on a tax-deferred basis, but distributions in retirement are subject to ordinary income tax.

Such accounts have no income phaseout limits so you can generally contribute the lesser of your income or $24,500 in 2026. And if you're over age 50, you can make catch-up contributions to your 401(k) in 2026—up to $8,000 for ages 50 to 59 and 64 or older, or $11,250 if you're age 60 to 63. However, be aware, if your wages total $150,000 or more for the prior year, any catch-up contributions will need to be made using after-tax dollars to a Roth account.

Like their traditional 401(k) counterparts, Roth 401(k)s don't have income limits. So if you don't qualify for a Roth IRA because your income is above IRS limits, you can make after-tax contributions to a Roth 401(k) if offered by your employer. Not only will potential earnings grow tax-free, but you'll pay no federal taxes or penalties on withdrawals so long as the account has been open five years and you're age 59½ or older. It's important to note that the annual contribution limit will apply across both traditional 401(k) and a Roth 401(k) accounts, not on each account individually.

Unlike a Roth IRA, high-earners may contribute directly to a traditional IRA—for 2026, up to $7,500 plus a $1,100 catch-up for those ages 50 and older. However, the deductibility of such contributions phases out for single filers with a MAGI above $91,000 and joint filers with a MAGI above either $149,000 (if you participate in a workplace retirement plan) or $252,000 (if you're not covered but your spouse is).

So without an upfront tax break and withdrawals of earnings taxed as ordinary income, is contributing to a tax-deferred IRA worth considering? It can be in some situations. For example, if you're currently a high-earner, it's possible your income in retirement will place you in a lower federal tax bracket when you retire. In this case, a traditional tax-deferred IRA could make sense since all withdrawals would be taxed at the lower ordinary income rate. However, it's possible a backdoor Roth conversion might be an even better option for you (see "Consider a Roth conversion").

For high-earners who have a traditional IRA, you could convert some or all the funds into a Roth IRA, particularly if you have a long time horizon and expect to be in the same or a higher tax bracket in retirement. Be aware when you perform a Roth conversion, you'll owe ordinary income tax on any pretax contributions and earnings you converted, but withdrawals will be tax-free after meeting account requirements (see "How are Roth conversions taxed?").

A backdoor Roth IRA is another way high-earners can secure the tax features provided by Roth accounts. With this strategy, you would open a traditional IRA, make nondeductible contributions to it, and roll over those funds to a Roth IRA at a later date. However, not only will you owe tax on any appreciation prior to the conversion, but the pro rata rule may also apply if you've previously made deductible contributions to an IRA (see "How are Roth conversions taxed?"). Once in the Roth IRA, savings are eligible to grow and be distributed tax-free.

High-earners who are enrolled in a high-deductible health plan (HDHP) that offers a health savings account (HSA) can use this tax-advantaged account to save for health care costs now as well as other expenses in retirement. HSAs have no income limits, so you can contribute up to $4,400 for an individual plan or $8,750 for a family plan in 2026. Individuals ages 55 and older may also make an additional $1,000 catch-up contribution. Contributions taken out of your paycheck reduce your taxable income at the federal, and possibly state, level while those made with after-tax dollars may be tax-deductible on your tax return.

Like Roth IRAs, HSAs don't have RMDs, so once you've built enough savings to maintain the minimum cash balance, if required, and cover two to three years of health care costs, consider investing excess HSA funds for potential growth. Earnings and withdrawals for qualified medical expenses are always tax-free. And after age 65, you can use your HSA as another source of retirement income without being subject to the 20% early withdrawal penalty, but funds will be subject to ordinary income tax.

Investing money in brokerage accounts along with tax-advantaged accounts can give high-earners greater flexibility in managing their tax bracket as they plan for retirement cash flows. While you'll owe tax on interest, dividends, and earnings, you can still invest tax-efficiently. Here are some strategies to consider:

• Hold onto investments for more than a year. When a you sell an investment, you'll pay capital gains tax on your earnings, either at the short-term rate of up to 37% or the long-term of either 15% or 20% for high-earners, depending on income. In addition, single filers with an adjusted gross income (AGI) over $200,000 and joint filers with an AGI over $250,000 may have to pay a net investment income tax of 3.8%.
• Offset your gains with losses. Tax-loss harvesting allows you to reduce capital gains with capital losses from selling an underperforming investment. Excess losses can offset up to $3,000 each year and apply any remaining loss to future tax years.
• Donate highly appreciated assets. If you are philanthropically inclined and hold long-term investments, you can donate assets directly to charity instead of selling them first and giving cash. Doing so allows you to avoid taxation of capital gains while potentially reducing your taxable estate, and you may be able to deduct the investment's fair market value in the year you make the donation—up to 30% of your AGI if you itemize. That said, under the One Big Beautiful Bill Act, you may claim only the portion of the gift that exceeds 0.5% of your AGI, and the highest earners in the 37% tax bracket are also subject to the 2/37 rule, which limits the deductible amount to 35 cents for every dollar of itemized deduction.

High-earners can't contribute directly to a Roth IRA, but there are other tax-smart ways to save for retirement. A wealth advisor, tax professional, or estate planner can help you find strategies that meet your current financial needs and your future goals.