Don't Let Your High Income Block You From Using a Roth IRA
IRAs can be great supplemental income in retirement. They operate similarly to brokerage accounts in that you can purchase any stock traded on the major stock exchanges, yet they come with tax breaks that make them worth utilizing.
Contributions to a traditional IRA are possibly tax-deductible, which lowers your income and tax bill. Roth IRA contributions aren't tax deductible, but you can take tax-free withdrawals in retirement. In 2022, the maximum contributions allowed to an IRA, both traditional and Roth combined, is $6,000 ($7,000 if you're 50 or older).
The main drawback of a Roth IRA is that it has income limits for full contribution eligibility:
Source Fool.com
