I want to address a mistake I see constantly in discussions about the Roth IRA income limits.

The Roth IRA phase-out limits ($146k-$161k for single filers, $230k-$240k for married in 2024) are limits on direct contributions, not on having a Roth IRA. If you earned $130k last year and contributed to a Roth IRA directly, then got a raise to $155k this year, you don't have to do anything with the old Roth — you just can't make direct contributions to it this year.

The backdoor Roth is the path forward for high earners: non-deductible traditional IRA contribution, then conversion. No income limit on conversions.

Also commonly misunderstood: the income limit is based on modified adjusted gross income, not gross salary. Pre-tax 401k contributions reduce MAGI. A person earning $165k who contributes $23,000 to a traditional 401k has a MAGI of approximately $142k — potentially still eligible for direct Roth contributions.

Run the actual MAGI calculation before assuming you're over the limit.