$200K-$500K earners: Focus on basic backdoor Roth ($7,000 annually) and consider mega backdoor Roth if employer plan allows after-tax contributions.
$500K-$1M earners: Maximize mega backdoor Roth contributions (up to $46,500+ annually) and consider strategic Roth conversions during market downturns.
$1M+ earners: Implement comprehensive Roth strategies including:
- Annual backdoor Roth contributions
- Mega backdoor Roth maximization
- Strategic conversion ladders
- Estate planning integration
Key considerations:
- Pro-rata rule: Minimize pre-tax IRA balances to avoid tax complications
- Income timing: Convert during lower-income years or market downturns
- Future tax rates: Consider current vs. expected retirement tax rates
Customer Success Story: Raven and Isela, Range members for almost a year, shared: "My wife had an IRA account, previous 401ks and had been making post tax IRA contributions for awhile. We wanted to set up a Roth, but with all of our accounts and the requirements, it was pretty complex. The Range team has walked us step-by-step through getting this set up, which was really helpful." 1
Source: Range Blog - Backdoor Roth IRA Guide, Range Blog - Mega Backdoor Roth, and Range Customer Success Stories
1 This testimonial was provided by a client of Range Advisory, LLC. No compensation was provided for this testimonial. The views expressed reflect the client’s opinions at the time of the interview and may not be representative of the experience of other clients. Testimonials do not guarantee future performance or similar outcomes.
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