Free Washington Retirement Planning Community and CoursesIf your income is too high to contribute to a Roth IRA, you’re not out of options, especially if you’re a Washington State employee.
In this episode of the Washington Retirement Planning Podcast, we break down three proven ways to continue building tax-free Roth income, even after you’ve passed the Roth IRA income limits. We also explain why some commonly recommended strategies, like backdoor Roth IRAs are often overused, misunderstood, and sometimes done incorrectly.
You’ll learn how Roth options inside Deferred Comp (457), 403(b), and employer plans work, why they have no income limits, and how recent Secure Act changes created powerful new catch-up opportunities for ages 50–63. We also walk through Roth conversions, when they make sense, how to avoid IRS penalties, and why paying taxes the wrong way can cost you extra.
Finally, we cover backdoor Roth IRAs: what they are, when they actually make sense, and the critical tax form (Form 8606) that people forget to file, often leading to penalties years later.
The second half of the episode answers a listener’s question about Plan 3 annuity options, comparing private annuities versus Washington State options like service credit purchases, TERS annuities, and the TAP annuity, including why the guaranteed 3% COLA makes TAP so powerful for early retirement planning.
If you’re a high-income earner trying to reduce future taxes and retire earlier, this episode is a must-watch.
00:00 – Why high earners get shut out of Roth IRAs
01:32 – 2025 Roth IRA income limits and phaseout ranges
02:53 – Best option #1: Roth Deferred Comp (no income limits)
04:05 – New Secure Act catch-up rules (ages 50–63)
05:16 – Option #2: Roth conversions and when they make sense
06:39 – How to pay Roth conversion taxes correctly (avoid penalties)
08:11 – Option #3: Backdoor Roth IRA explained (and common mistakes)
10:42 – Pro-rata rule and Form 8606 warning
14:55 – Listener Q&A: Plan 3 annuity options explained
20:22 – TAP annuity vs service credits vs TERS annuity
23:40 – Using annuities strategically to retire earlier
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