High Income

High income, high complexity.

READ2 min · UPDATED2026-04-30

Reviewed against primary sources cited at the bottom of this page.

Once you're above the Roth IRA income limit, the standard playbook changes. Backdoor Roth, mega backdoor, NIIT, IRMAA, equity comp, and state domicile planning all become relevant. The decisions are not harder, just different.

This page covers personal finance fundamentals that apply regardless of your view on Bitcoin or fiat currency.

This page covers US-specific accounts and tax law. Outside the US? The principle (rising income reveals new optimization layers) applies; the specific rules differ.

THE SHORT VERSION

High income is a good problem. But the standard personal finance advice stops being useful around $150,000. The Roth IRA phases out, the backdoor becomes necessary, equity comp introduces complexity, and the NIIT starts taking an extra 3.8% on investment income. This page maps the strategy layer that unlocks above that threshold.

Start here

1 · THE WORKAROUND

Backdoor Roth IRA

Available regardless of income. Watch the pro-rata rule if you have existing pre-tax IRA balances.

2 · THE SURPRISES

NIIT and AMT

The two taxes that surprise high earners every year. NIIT alone adds 3.8% on investment income above the threshold.

3 · THE LARGEST LEVER

State domicile

The highest-leverage tax decision for large Bitcoin holders. California to Texas on a $1M gain saves approximately $133K in state tax alone.

Your most important tools

Backdoor Roth Pro-Rata

Does your existing IRA balance create a tax problem when you do a backdoor conversion?

Roth Conversion Sweet Spot

How much to convert this year while staying in your target marginal bracket.

IRMAA Estimator

Will a large conversion this year raise your Medicare premium two years later?

Common questions

I earn over $168,000. Can I still do a Roth IRA?

Yes, via the backdoor Roth. Contribute after-tax to a Traditional IRA, then convert. Watch for the pro-rata rule if you have existing pre-tax IRA funds. Backdoor Roth →

What is the NIIT and do I owe it?

A 3.8% surtax on investment income above approximately $200K single or $250K MFJ. Applies to Bitcoin capital gains, dividends, interest, and rental income. NIIT and AMT →

I have ISOs or RSUs at my company. How do I handle them?

ISOs can trigger AMT at exercise. RSUs are taxed as ordinary income at vest. The timing decisions are significant; many people leave money on the table by treating them as auto-pilot. Equity compensation →

Does it make sense to move states for a Bitcoin sale?

California at a $1M gain: approximately $133K in state taxes. Texas: $0. The move has to be a real one. California audits departing high earners aggressively. State domicile →

Should I use a mega backdoor Roth?

If your 401k plan allows after-tax contributions with in-plan Roth conversion: yes, up to an additional approximately $43,500 into Roth annually. Mega backdoor Roth →

Reading path

Last updated 2026-04-30. Not financial advice. Do your own research.

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