3661 / Can a taxpayer whose income level exceeds the limitations for Roth IRA contributions maintain a Roth IRA?

Yes. Despite the fact that a taxpayer whose income level exceeds the Roth IRA contribution limits cannot contribute directly to a Roth IRA, he or she is permitted to maintain a Roth account. In 2025 (projected), the ability to make contributions to a Roth IRA begins to phase out for married taxpayers with income over $236,000 ($150,000 for single taxpayers). In 2024, the ability to make contributions to a Roth IRA begins to phase out for married taxpayers with income over $230,000 ($146,000 for single taxpayers). ¹

In 2025 (projected), Roth contributions are completely disallowed for married taxpayers who earn over $246,000 and single taxpayers who earn over $165,000. In 2024, Roth contributions are completely disallowed for married taxpayers who earn over $240,000 and single taxpayers who earn over $161,000.²

While contributions cannot be made directly to the Roth IRA if the taxpayer’s income exceeds the annual income threshold, for tax years beginning in 2010 and after, the income limits that applied to prevent high-income taxpayers from making rollovers from traditional IRAs were eliminated.³

Therefore, many high-income taxpayers may make contributions indirectly to a Roth account, via a series of rollovers from traditional IRAs. The taxpayer must first open a traditional IRA if he or she does not already maintain such an account (in 2025 (projected), each taxpayer can contribute up to $7,000 to an IRA ($8,000 if the taxpayer is 50 or older)). Using the so-called “backdoor” Roth IRA technique, the taxpayer can then roll a portion of the traditional IRA into a Roth IRA account each year, though taxes must be paid on the amounts that are rolled over. See Q 3662 for rules regarding rollovers from an IRA to a Roth IRA.

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1.   Notice 2023-75.