The Roth IRA Mistake High Earners May Be Making

Written By Michael Custer

If you're a high-income earner, there's a good chance you could be making a costly IRA mistake without even knowing it — and it could be triggering a 6% penalty every single year if left uncorrected.

In this video, we cover one of the most overlooked rules around Roth IRAs and Traditional IRAs that can quietly catch families off guard — even ones working with seasoned advisors.

Topics Covered:

  • The Roth IRA income limits that can trip people up

  • What "phasing out" actually means for your contributions

  • What can happen if you contribute to a Roth IRA when over the income limit

  • Ways to potentially still fund a Roth IRA and how they work

  • The pro rata rule explained

  • When a 401(k) may still work even if a Roth IRA doesn't

  • Using an HSA as part of a broader retirement strategy

  • A simple order of operations for high earners

  • How to address IRA contribution mistakes

  • Career lessons Michael and Jacqueline have carried with them

Michael Custer

Michael graduated from Hope College where he played Quarterback for the football team. Now, he focuses on tax strategies, helping W-2 employees and small business owners with implementing tax strategies, learning their choices with old work retirement plans, and Roth IRAs. He has a passion for building a relationship with his clients. Understanding why money matters to you is important to him. He firmly believes that finances can be a powerful tool for your life goals.

Michael is a CERTIFIED FINANCIAL PLANNER™ (CFP®) and also holds his Series 7, Series 66, Series 24. and SIE registrations with LPL Financial as well as his Life, Health, Property and Casualty insurance licenses.

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