How to Contribute to a Roth IRA: Different Ways to Maximize Your “Roth” Funds

Jeff Albaneze
Aug 6
4 min read

For many high earners and families planning for long-term wealth, Roth accounts offer one of the most powerful tools in financial planning: tax-free growth and tax-free withdrawals in retirement.

But between income limits, workplace plan options, and evolving tax law, it’s not always clear how, or if, you can contribute to a Roth. This article outlines the different strategies to build your Roth nest egg, optimize tax efficiency, and protect your future income.

Understanding the Roth vs. Traditional Difference

Before exploring contribution strategies, it’s important to understand the core distinction between Roth and Traditional retirement accounts:

Traditional IRA or 401(k): Contributions are pre-tax, grow tax-deferred, and are taxed as ordinary income when withdrawn.
Roth IRA or Roth 401(k): Contributions are made with after-tax dollars, grow tax-free, and qualified withdrawals are tax-free, forever.

The key trade-off: Do you want to pay taxes at your current tax rate? Or wait until retirement?

Traditional vs. Roth 401(k): Which Should You Choose?

If your employer offers both Traditional and Roth 401(k) options, choosing where to direct your contributions is a meaningful tax planning decision.

If you’re currently in the 22% federal tax bracket (which in 2025 ranges from about $47,150 to $100,525 for single filers), you may benefit from taking the tax deduction now and contributing to the Traditional side. The higher your income today relative to retirement, the more compelling tax deferral becomes.

That said, if your future income is likely to rise, or if you value tax diversification, contributing to a Roth 401(k) may still make sense. Many high earners split contributions between both to hedge future tax risk.

Can I Contribute to a Roth IRA Directly?

Yes, but only if your income is under certain limits. For 2025, direct Roth IRA contributions are phased out at the following modified adjusted gross income (MAGI) levels:

Filing Status	Phase-out Begins	Ineligible Above
Single	$146,000	$161,000
Married Filing Jointly	$230,000	$240,000

If you’re within these limits, you can contribute:

$7,000 per year (under age 50)
$8,000 per year (age 50+)

These are after-tax contributions that grow tax-free and can be withdrawn tax-free in retirement, as long as you’ve had the Roth for five years and are over age 59½.

What If I Make Too Much? Use a Backdoor Roth IRA

If your income exceeds the limits above, you may still be able to contribute to a Roth using a backdoor Roth strategy:

Contribute to a non-deductible Traditional IRA
Immediately convert those funds to a Roth IRA

This works best if you don’t already have other pre-tax IRA assets, due to the pro rata rule, which can make part of the conversion taxable. For example, if you have large balances in traditional IRAs, a portion of the converted amount will be taxed.

Want to Contribute Even More? Consider the Mega Backdoor Roth

High-income earners with access to a 401(k) plan that allows after-tax contributions and in-plan Roth conversions may be able to contribute far more through the Mega

Backdoor Roth strategy.

Here’s how it works:

The total contribution limit to a 401(k) in 2025 is $69,000 (or $76,500 if age 50+)
This includes: your pre-tax/Roth salary deferrals + employer match + after-tax contributions
If your salary deferral and employer match total $40,000, you could contribute another $29,000 after-tax
Then, convert those after-tax dollars to Roth (either in-plan or by rolling to a Roth IRA)

Checklist:✅ Your plan allows after-tax contributions✅ Your plan allows Roth conversions or in-service rollovers✅ You can afford to max out after-tax contributions

With the right plan design, this is one of the most powerful and underutilized Roth funding strategies.

Don’t Forget: Spousal Roth IRA Contributions

If your spouse doesn't work, or earns little income, they may still be able to contribute to a Roth IRA using your household income.

Requirements:

You must file married filing jointly
Your combined earned income must exceed both of your IRA contributions
Your spouse’s contribution is subject to the same income limits mentioned above

This is a valuable opportunity to double up on Roth savings as a couple.

Withdrawal Rules to Keep in Mind

To avoid taxes or penalties:

Roth IRA withdrawals are tax-free if the account is 5+ years old and you’re over age 59½
Roth 401(k) withdrawals follow similar rules but must be rolled into a Roth IRA before starting the 5-year clock if you want continued tax-free growth after retirement

These accounts are powerful but only when used correctly.