Backdoor Roth IRA
A two-step workaround that lets high earners (above the direct Roth IRA income limit) still get $7k/yr ($8k if 50+) into a Roth.
How it works
1) Contribute to a NON-deductible Traditional IRA. 2) Immediately convert it to a Roth IRA. There's no income limit on conversions, so high earners get the same $7k/yr Roth contribution as everyone else.
The pro-rata trap
If you have ANY pre-tax dollars in ANY Traditional, SEP, or SIMPLE IRA on Dec 31, the IRS prorates your conversion — you'll owe tax on most of it. Fix: roll existing pre-tax IRA balances INTO your 401(k) first (if your plan accepts rollovers in).
Mega Backdoor Roth
If your 401(k) allows after-tax contributions AND in-service rollovers/conversions, you can stuff up to ~$46k MORE per year into a Roth on top of the normal $23k limit. Worth checking the plan document.
Educational only — not tax, legal, or investment advice. Talk through your specific situation with a qualified advisor.