If you're a high-income professional in Ohio—earning $200,000+ as a physician, engineer, executive, or business owner—you face unique retirement planning challenges. Higher tax brackets mean more of your savings could go to federal and state taxes rather than your future security. In 2026, with potential tax law uncertainties and Ohio's state income tax on most retirement distributions, smart tax planning is essential.
The good news? There are proven, IRS-approved strategies to minimize taxes, maximize growth, and build tax-efficient income streams. As a fiduciary advisor focused on Ohio professionals, I've helped many clients reduce lifetime tax burdens while protecting their wealth.
This 2026 guide covers the most effective tax-advantaged retirement strategies tailored for high earners in Ohio. Implementing these can potentially save you tens—or hundreds—of thousands in taxes over time.
Understanding Ohio's Tax Landscape for Retirement in 2026
Ohio taxes traditional retirement account withdrawals (401(k)s, IRAs, pensions) as ordinary income, with rates up to 3.5% based on your bracket. Social Security is generally exempt, and there's a small retirement income credit for some. But for high earners, federal taxes (up to 37%) plus state add up quickly.
High-income phaseouts also limit direct contributions to Roth IRAs and deductibility of traditional IRAs. That's why advanced strategies matter—turning taxable growth into tax-free or tax-deferred.
Goal: Shift income to lower-tax years, use tax-free vehicles, and optimize withdrawals.
Strategy #1: Roth Conversions – Pay Taxes Now for Tax-Free Growth Later
A Roth conversion involves moving funds from a traditional IRA or 401(k) to a Roth IRA, paying taxes on the converted amount upfront.
Why it's powerful for high earners:
- Future qualified withdrawals (after age 59½ and 5-year holding) are tax-free—including growth.
- No required minimum distributions (RMDs) during your lifetime, allowing more legacy planning.
- Reduces future taxable income, potentially lowering Medicare premiums and Social Security taxation.
2026 Ohio considerations:
- Conversions are taxable at federal and Ohio state levels—time them for lower-income years (e.g., between jobs or pre-Social Security).
- Bracket management: Convert just enough to fill lower tax brackets.
- Ideal for those expecting higher future rates or significant portfolio growth.
How to implement: Work with an advisor to model multi-year conversion ladders, balancing current taxes with long-term savings.
Strategy #2: Backdoor and Mega Backdoor Roth Contributions
Direct Roth IRA contributions phase out for high earners (2026 MAGI limits likely around $161,000–$176,000 single / $256,000–$266,000 married). But the "backdoor" bypasses this.
Backdoor Roth:
- Contribute to a non-deductible traditional IRA (no income limits).
- Convert to Roth IRA (minimal taxes if no pre-tax funds).
Mega Backdoor Roth (if your 401(k) plan allows after-tax contributions):
- Max pre-tax/Roth 401(k): $23,500 ($31,000 if 50+).
- Add after-tax contributions up to overall limit (~$70,000 total).
- Convert to Roth 401(k) or roll to Roth IRA.
Ohio advantage: Tax-free Roth growth shields you from state taxes on withdrawals. Many Ohio employers (especially larger firms in Cleveland or Columbus) offer these features—check your plan.
Strategy #3: Maximize Health Savings Accounts (HSAs) as "Stealth" Retirement Vehicles
HSAs offer triple tax advantages: deductible contributions, tax-free growth, and tax-free medical withdrawals.
- 2026 limits: Likely $4,150 individual / $8,300 family (+ catch-up for 55+).
- After 65, non-medical withdrawals are taxable but penalty-free—like a traditional IRA.
For high earners: HSAs are ideal for future healthcare costs (Ohio long-term care averages $100,000+ annually). Invest contributions for growth. Pair with high-deductible health plans—common for professionals.
Strategy #4: Charitable Giving Strategies for Tax Reduction
If philanthropy aligns with your values:
- Qualified Charitable Distributions (QCDs): From age 70½, direct up to $105,000 annually from IRAs to charity—counts toward RMDs, excludes from taxable income.
- Donor-Advised Funds (DAFs): Bunch donations for itemized deductions in high-income years.
- Appreciated securities: Donate stocks instead of cash to avoid capital gains.
These reduce adjusted gross income, lowering taxes and Medicare surtaxes.
Strategy #5: Tax-Efficient Investment Placement and Withdrawal Sequencing
Beyond accounts, optimize where you hold assets:
- Taxable brokerage: Long-term growth stocks, tax-managed funds, municipal bonds (federal tax-free; some Ohio-specific).
- Tax-deferred (traditional 401(k)/IRA): Bonds, REITs (high ordinary income).
- Tax-free (Roth): High-growth assets.
Withdrawal order (general rule):
- Taxable accounts first.
- Tax-deferred.
- Roth last.
This preserves tax-advantaged growth longer and manages brackets. Incorporate tax-loss harvesting and low-turnover index funds.
Common Pitfalls High Earners Face—and Protection Considerations
- Overlooking Pro-Rata Rule: Mixing pre/post-tax IRA funds complicates backdoor conversions.
- Ignoring Net Investment Income Tax (3.8% surtax): On income over $200,000/$250,000.
- Forgetting Protection: Long-term care or disability events can force early withdrawals, triggering taxes.
Build safeguards: Long-term care insurance preserves assets; disability coverage protects income for continued contributions.
Take Control of Your Tax Future in 2026
These strategies aren't one-size-fits-all—they require customization based on your income, age, goals, and Ohio specifics. The result? More money working for you, less for taxes.
At The Protection Pro, we partner with high-earning Ohio professionals to design tax-efficient, protection-first retirement plans. We listen to your situation, run projections, and implement step-by-step.
Ron Maxwell, Founder & Financial Advisor
The Protection Pro, LLC
Independence, Ohio