What are my options for my employees whose incomes exceed the Roth IRA phase-out limit?

During the employer signup process we offer a solution for organizations with high earning employees.

During signup, the employee will have a choice to setup a Traditional IRA solution, for which eligibility is not limited by salary earnings. This will allow employees who earn greater than the Roth IRA income limit to have an alternative contribution path for their own retirement.

The employer will have a choice to offer a SEP IRA solution to all eligible employees (which is set by the employer subject to tax code requirements). The employer can choose to make a maximum contribution of up to the lesser of: (i) 25% of compensation, or (ii) $53,000 (for 2016) or $54,000 (for 2017) and subject to annual cost-of-living adjustments for later years for all eligible employees.

These options allow the employer or employee to make contributions at their discretion. There should always be a path for your employees to save for their retirement and Honest Dollar will help enable that path.

You can find out more about the current Roth earnings limitations here:

https://www.irs.gov/Retirement-Plans/Roth-IRAs