The Roth IRA Income Phaseout Explained for High Earners

Episode 14 of Retirement Planning with Fexingo: 401k, IRA, and Saving for Your Future dives into the Roth IRA income phaseout — the little-known rule that silently blocks high earners from contributing directly. Lucas and Luna break down the phaseout thresholds for 2026: $150,000 to $165,000 for single filers and $236,000 to $251,000 for married couples filing jointly. They explain the 'pro rata rule' that makes the backdoor Roth IRA a trap if you have a traditional IRA balance, and walk through a concrete example of a married couple earning $240,000 who accidentally trigger a 6% excise tax on excess contributions. The episode also covers strategies to avoid the tax hit: rolling existing IRA balances into a 401k, using a mega backdoor Roth if your employer allows after-tax contributions, and the simpler option of recharacterizing contributions. No fluff, just the numbers and rules that matter. #RothIRA #IncomePhaseout #BackdoorRothIRA #ProRataRule #HighEarners #RetirementPlanning #Finance #FinancialPlanning #IRARules #TaxStrategy #MegaBackdoorRoth #ExcessContributions #ExciseTax #401k #FexingoBusiness #BusinessPodcast #RetirementSavings #WealthManagement Keep every episode free: buymeacoffee.com/fexingo