Long-Term Tax-Advantaged Retirement Income Options for High Income Earners
High-income earners face unique financial challenges. Higher salaries often come with significant tax liabilities and increased lifestyle expenses. A research* found that nearly 50% of employees earning over $100,000 per year are “very concerned” about their financial stability. Without a proactive approach to long-term retirement income planning, even those earning well above the national average can find themselves unprepared for retirement.
Your annual contribution to a Roth IRA is limited by your Modified Adjusted Gross Income /(MAGI). According to the new Roth IRA income limits for 2026, you will not qualify to contribute to a Roth IRA if your income and filing status are as outlined in the chart below.
2026 Roth IRA Income Limits (MAGI)
Filing Status Not Eligible to Contribute
Single, Head of Household $168,000 or more
Married Filing Jointly $252,000 or more
Married Filing Separately $10,000 or more (if lived with spouse)
Starting in 2026, employees aged 50 and older who earn over $145,000 must make 401(k) catch-up contributions on an after-tax (Roth) basis. If an employer's plan does not have a Roth feature, impacted employees may be unable to make catch-up contributions until the plan is updated.
Please review the chart below to find the new 2026 401(k) catch-up limits.
2026 401(k) Catch-Up Options & Limits
Age Group Standard Employee Limit Standard Catch-Up Total Possible Contribution
Under 50 $24,500 N/A $24,500
Age 50–59, 64+ $24,500 +$8,000 $32,500
Age 60–63 $24,500 +$11,250** $35,750
If your catch-up contributions are impacted by this change, you may need to find other ways to minimize your tax exposure and optimize your retirement plan in the current year and beyond. For example, you may want to consider the cash value of a life policy or an income annuity. While the primary purpose of a permanent life policy should be to provide insurance protection that continues for life, it can also be leveraged to build financial strategies that offer diversified tax benefits. A tax-deferred income annuity is a retirement product that can provide you with a stream of guaranteed income, starting when you decide and lasting for life.
The decision to purchase a life policy or an annuity requires careful consideration and analysis. Please schedule a call to learn more about these and other long-term tax-advantaged retirement income options and strategies that could help you optimize your retirement plan.
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*The Unseen Costs of Financial Stress in the Workforce, Immediate Market Report, February 1, 2021
**The "super catch-up" for ages 60-63 is available only if the employer's plan adopts this specific SECURE 2.0 Act provision.