Summary

The website content discusses that income limits do not apply to Roth 401k contributions and Roth conversions, providing high-income earners with strategies for tax-free retirement savings.

Abstract

The article emphasizes that despite high income levels potentially disqualifying individuals from contributing to a Roth IRA, there are no income restrictions for contributing to a Roth 401k or executing Roth conversions. It suggests that these financial vehicles are effective for building substantial tax-free savings for retirement, more so than relying solely on Roth IRA contributions, which are subject to annual limits. The piece highlights the benefits of Roth conversions, including the flexibility to convert large sums of money, regardless of income, and the potential to avoid taxation on social security benefits in retirement by drawing income from a Roth IRA, which does not count as provisional income.

Opinions

Roth IRA contributions are limited by income, but Roth 401k contributions and Roth conversions are not, making them valuable tools for high-income earners.
Roth conversions are seen as a superior method for amassing tax-free retirement savings compared to Roth IRA contributions due to the absence of contribution limits.
The article suggests that individuals with high incomes should not be deterred from using Roth 401k accounts and should consider strategic Roth conversions to maximize their tax-free retirement savings.
It is implied that having a significant portion of retirement income from a Roth IRA is advantageous for minimizing taxes on social security benefits.
The author appears to advocate for proactive tax planning, including paying taxes now rather than later in retirement, to take full advantage of tax-free growth and withdrawals.

Income Limits DO NOT Apply to Roth 401k’s & Roth Conversions

(don’t forget to checkout the video too)

Making too much money can cause problems…

For example, if you make too much money you are no longer eligible to contribute to a Roth IRA.

And most people know that Roth IRA’s are one of the best ways to put yourself in a position for a tax-free retirement.

So what do you do⁉️

Well, contributing to a Roth IRA isn’t the only way to build up tax-free savings for retirement.

In fact, it’s one of the slowest ways since you are confined by the annual contribution limits.

The best way to get a large amount of money into a Roth IRA is with a Roth Conversion.

And your income will not affect your ability to perform a Roth conversion.

You could have $5B of annual income and you are still free to do Roth conversions any time you want…

AND at whatever level you want.

In fact, you can do a $100M Roth conversion if you want!

So your income doesn’t matter.

The same is true with contributions to your Roth 401k.

No matter how much money you make you can still contribute to your Roth 401k, however, that doesn’t necessarily mean you should.

So even if you make too much money to contribute to a Roth IRA there are still a lot of great options for getting money into one before retirement.

And remember, if most of your income in retirement comes from a Roth IRA it won’t count as provisional income…

Which is a great way to prevent taxation on your social security. 🤌

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Enjoy this blog? You’ll probably enjoy this one as well: How To Take Money From 401k’s & IRA’s [100% Tax-free]

To your success,

Matt