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Richard T. Miller, CPA, PFS
Registered Representative
Van Buren Financial Group, LLC
615 West 18th Street, Wilmington, DE 19802
Phone: 302-655-9505
January/February 2026
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)/403b/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 contribution as a Roth contribution
Van Buren Financial Group, LLC and LTM Marketing Solutions, LLC are unrelated companies. This newsletter was created by LTM Marketing Solutions, LLC and was not written or created by the named financial professional and does not necessarily represent the views and opinions of Cetera Wealth Services LLC or its subsidiaries. Securities offered through Cetera Wealth Services LLC, member FINRA/SIPC. Advisory Services offered through Cetera Investment Advisers LLC, a registered investment adviser. Cetera is under separate ownership from any other named entity. Rebalancing may be a taxable event. Before you take any specific action be sure to consult with your tax professional. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.
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