If you make too much to contribute directly to a Roth IRA, «you may have
other options,» says Levi Sanchez, a virtual financial planner for millennials and cofounder of Millennial Wealth, Seattle, Wash. «Check to see if your employer offer's a Roth 401 (k)
provision, or consider a «backdoor» Roth IRA
conversion.»
And in 2010, delayed
provisions from the Tax Increase Prevention And Reconciliation Act of 2005 finally took effect, eliminating Roth
conversion income limits altogether, allowing anyone with a pre-tax retirement account — IRA or 401 (k)(or any
other employer retirement plan)-- to convert to a Roth IRA (or even intra-plan to a Roth 401 (k)-RRB-.