you're listening to Ramsey every day millionaires where we talk retirement building wealth and outrageous generosity.

All right next up we have Ethan calling from Salt Lake City Utah. Hey Ethan welcome to the show.

Hey guys, appreciate it. Yeah thanks for calling. Well I'm on baby steps 4.5 and 6 and I got a retirement question.

I put into a Roth 401k at my work but I they limit me to 10% per year because of my income and that's I'm not able to quite reach the Roth cap or the 401k Roth cap.

So on the side I've got Roth set up so that me and my wife can put into them each year but my question is once I max those out what is the next best option and my company also offered this year.

I'm not going to get a Roth or this thing called a super Roth but it looks really complicated and has super concerning tax stuff.

So there's two versions of the super Roth one is basically a scam involving index universal life insurance and the other one is more of a mega back door Roth is what it's traditionally called which is after tax contributions to the 401k.

Yeah that's that one. I research it to make sure because when I see it it was whole life I'm like whoa whoa no way.

Okay cool so you're saying they they cap you at 10% you don't even hit the Roth 401k limit.

Not quite so I came close last year than $10,000 but I mean I don't know what'll be this year I'm hoping I'll still get to the max year.

So what is your income? Around 180.

I've never heard where they won't even let you max out your 401k.

That's because of highly complicated employees. It's some loop hold it between Labor Department IRS that they capped individuals and make over 130 to have.

I don't know what don't make sense to me but I called up several different ladders and made sure.

Okay. Without going to a different 401k plan which they don't offer so your other options would then be. Do you guys make too much for the Roth IRA contributions.

I'm not sure what you mean like outside my work is anything there are income limits for the Roth IRA outside of work so look into that to see if you guys hit that cap on the.

AGI and if you can't contribute to the Roth IRA you could do what's called a backdoor Roth where you contribute to a traditional IRA and then you convert it into Roth.

So I would be connecting with a smart investor pro at Ramsey Solutions dot com for a high earner you want to know all of the strategies you can use to build wealth and there are a ton out there that we don't have time for here.

So connect with a smart investor pro and they can help navigate for your situation.

Thanks for tuning into Ramsey everyday millionaires to check out all our podcasts just search Ramsey Network on Apple Podcasts Spotify or wherever you listen.