Should You Pause Roth Contributions in a High-Income Year?

By Maurie Backman – Mar 20, 2026 at 12:38PM ESTKey PointsRoth IRAs and 401(k)s are funded with after-tax dollars.If your income pushes you into a higher tax bracket, saving in a Roth may not be your best bet.In some cases, switching to a traditional retirement account could be a better bet.When it comes to saving for retirement, you have choices. You could try to snag an immediate tax break on your contributions by funding a traditional IRA or 401(k). Or, you can save in a Roth retirement account for the various benefits involved. Roth IRAs and 401(k)s are funded with after-tax dollars, but they also allow your money to grow tax-free. They also allow for tax-free withdrawals during retirement. Image source: Getty Images. Plus, with a traditional retirement account, you're eventually forced to take mandatory withdrawals known as required minimum distributions, or RMDs. Roth accounts don't impose RMDs, giving you more flexibility with your money. It often makes sense to fund a Roth IRA or 401(k) when your income is on the lower side. If you're not in a very high tax bracket, forgoing the tax break on contributions could make sense. But what if you've used to funding a Roth account and your income rises? Should you keep at it, or change your strategy? It could pay to hit pause on Roth contributions The higher your tax bracket, the less it might make sense to contribute to a Roth retirement plan during your working years. If you have a high income now, you may end up in a lower tax bracket during retirement, in which case it could pay to take the tax break on your IRA or 401(k) contributions now and pay taxes on withdrawals later. Now it may be that your income is suddenly a lot higher for different reasons. You may have gotten a big raise, a promotion, or a new job. Or, you may have stumbled upon a very lucrative side hustle. If you're suddenly looking at a higher-income year, it could pay to stop funding a Roth and instead contribute toward retirement in a traditional IRA or 401(k). If your rise in income is temporary, you can go back to funding a Roth account in future years if your earnings drop back down. But it often pays to utilize a traditional IRA or 401(k) when you're in a high tax bracket. You can also do a conversion Of course, the downsize of funding a traditional retirement plan is dealing with taxes and RMDs later on. But just because you switch to a traditional IRA or 401(k) in the near term doesn't mean your money is stuck in that account forever. You may decide to take an easier, lower-paying job in the years leading up to retirement. If your income drops as a result, that could be a good time to do a Roth conversion. You'll pay taxes on whatever money you convert from a traditional retirement plan to a Roth. But at that point, your tax bracket may be lower than what it is during a high-income year, ultimately saving you money. The amount of money you earn -- and the taxes your wages result in -- should help play a role in deciding what sort of retirement account to contribute to. While there are plenty of perks that come with funding a Roth IRA or 401(k), you may reach a point when it pays to stop contributing to a Roth and direct your money to a traditional retirement plan instead.Read NextMar 20, 2026 •By Kailey Hagen, CFPIs There a Right Time to Take Your Required Minimum Distributions (RMDs)?Mar 20, 2026 •By Kailey Hagen, CFPAre You Missing Out on Your 401(k) Match? Here's Why That Could Be a Mistake.Mar 20, 2026 •By Kailey Hagen, CFP3 Reasons You May Not Want to Retire in FloridaMar 20, 2026 •By Christy BieberWhy Retirees With Roth Accounts May Not Benefit From the New Senior Tax DeductionMar 20, 2026 •By Maurie BackmanThink You Don't Need Your RMD? 3 Smart Ways to Use That Money Without Wasting It.Mar 20, 2026 •By Maurie BackmanWhat the 2026 Social Security Earnings Limit Means for Early RetireesAbout the AuthorMaurie Backman is a contributing Motley Fool retirement and Social Security expert with more than a decade of experience writing about personal finance, investing, and retirement planning. Maurie previously worked in finance analyzing distressed companies. She studied finance at Binghamton University.TMFBookNerd