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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

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Adan H. Diaz and Bryce McLeish offer products and services using the following business names: FRESCO Financial Advisers – insurance and financial services | Ameritas Investment Company, LLC (AIC), Member FINRA/SIPC – securities and investments | Ameritas Advisory Services (AAS) – investment advisory services. AIC and AAS are not affiliated with FRESCO Financial Advisers.  The information you provide us is the basis for the recommendations we make to help you meet your unique financial goals and objectives. If you experience a change in your financial situation or investment objectives, or if you wish to modify or add any restrictions concerning the management of your account, please contact us.   Products and services are limited to residents of states where the representative is registered. This is not an offer of securities in any jurisdiction, nor is it specifically directed to a resident of any jurisdiction. As with any security, request a prospectus from your representative. Read it carefully before you invest or send money. A representative will contact you to provide requested information. Representatives of AIC and AAS do not provide tax or legal advice. Please consult your tax advisor or attorney regarding your situation.

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