The rules say that if your income is over $150,000 per year ($236,000 joint), you cannot make a contribution to a Roth IRA.
But do not let this stop you.
Tell your financial advisor that you want to make a “backdoor Roth” contribution.
This simply means that you make a NON-deductible contribution to a traditional IRA, then immediately convert it to a Roth IRA.
Why does this work? Because there is no income limit for making a traditional IRA contribution. And because of the high income, any such contribution is not deductible anyway.
So, this gets you the Roth contribution you want for tax-free lifetime growth, and it is completely within the rules.
CAUTION: A Backdoor Roth contribution DOES NOT WORK if you already have a traditional IRA. This is because conversions must be made “pro-rata” across ALL IRAs you own. You cannot pick only the current contribution to convert. If you already have a traditional IRA, attempting a Backdoor Roth contribution will have negative tax consequences.
