Can high earners still use Roth strategies despite income limits?

The income limits on direct Roth IRA contributions are real, but they only apply to the direct route. A backdoor conversion involves contributing to a traditional IRA, which has no income limit, and then converting those funds to a Roth, which does not carry the same restriction.

Business owners have an additional option many overlook: a Roth conversion inside a solo 401(k) or other qualified plan, which can allow for much larger amounts to move into tax-free growth than an IRA-based strategy alone.

The tax due at the time of conversion is real and shouldn't be ignored. The strategy works best when there's a lower-income year, an unusually large deduction, or another reason the conversion's tax cost is lower than it would be in a typical year.