If you earns too much, you are unable to make a regular contribution to a Roth IRA. But there is a workaround called the Backdoor Roth Contribution. There are many complicated steps that must be considered and if done improperly can result in significant penalties.
To help make this easier, we have made the “Can I Make a Backdoor Roth IRA Contribution” flowchart available. It addresses common issues that occur when doing a Backdoor Roth IRA: Contribution:
Earned income phase-out ranges for the current year
Pro-rata rules and the formula to determine the taxable amount
Mechanics of making a Backdoor Roth Contribution
Updated for 2020 (Includes updates fo The SECURE Act)