4 Ways to Contribute Over $100,000 a Year to a Roth IRA

Here are four ways in which you can contribute over $100,000 a year to a Roth IRA. I'm Tyler, a former financial advisor and portfolio manager, and I create financial content for free to ensure you have access to valuable information.

1. Open a Roth IRA

You could take five minutes today to open up a Roth IRA through Vanguard, Schwab, or Fidelity. You can contribute up to $7,000 into that account, invest it in low-cost index funds, and enjoy 30 to 40 years of compound tax-free growth.

2. Use the Backdoor Roth IRA

If you make too much money to contribute directly to a Roth IRA, first off, congratulations, you’re going to be fine! Just utilize the backdoor. Open a traditional IRA through Fidelity, Schwab, or Vanguard. Make a non-deductible contribution of up to $7,000 and then convert it to a Roth, as there are no income limits on conversions.

3. Mega Backdoor Roth IRA

If you’ve already maxed out your IRAs, you can take advantage of the mega backdoor option. If you have access to a 401(k) plan that allows for post-tax contributions, you can contribute up to $23,000 individually in 2024. Combined with your employer, you can contribute up to $69,000, plus an additional $7,500 if you're over 50.

4. Convert Old Accounts

Finally, you can always convert any old 401(k) or traditional IRA to a Roth IRA, as again, there are no income limits on conversions. Remember, you don’t have to do it all at once, because converting triggers a tax event.

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