If you're single and your income is approaching $125,000 or you're married filing jointly and your combined income is approaching $198,000, the amount you can contribute into your Roth is reduced. Once your income is too high you can no longer make contributions into a Roth.
However, there is a way around this. A back door approach. It’s called the Back Door Roth IRA.
How does it work?
You will make contributions into your Traditional IRA and then convert it to your Roth IRA. It’s pretty simple to do. You just need to call up your brokerage when you’re ready to make the Traditional to Roth conversion.
The big benefit of doing this is that when you start making distributions from your Roth, the income will be TAX FREE to you!