Earned income is a requirement to contribute to a traditional IRA, and your annual contributions to an IRA cannot exceed what you earned that year. No, there is no maximum income limit for traditional IRAs. Anyone can contribute to a traditional IRA. While a Roth IRA has a strict income limit and those with higher incomes cannot contribute at all, no such rule applies to a traditional IRA.
Regardless of the number of accounts you have, your total annual contributions cannot exceed the maximum allowable limit. Backdoor Roth involves opening a traditional IRA, making non-deductible contributions, and transferring those funds to a Roth IRA at a later date. You may or may not be able to claim a deduction from your traditional IRA contributions, depending on whether you or your spouse are covered by an employer-sponsored retirement plan, your filing status, and your modified adjusted gross income (MAGI). Some advisors also see the so-called backdoor Roth IRA as another way to secure the tax features provided by Roth accounts.
Finally, as mentioned above, having money in taxable and tax-advantaged accounts can give you greater flexibility and access to savings for needs prior to age 59 and a half, the minimum age at which you can withdraw funds from traditional IRAs and retirement accounts without a penalty of 10% for early withdrawal. If you plan to contribute to a traditional IRA, only contribute up to the amount you are allowed to deduct. You don't have to keep your IRAs in the same accounts from your contribution date to your retirement date. First, if they work for a company that offers a 401 (k) plan or similar, they can probably afford to contribute the maximum amount to the plan, which in almost every case should be done.
This is regrettable because Roth IRAs offer profit growth and tax-free withdrawals during retirement1, making them a potentially valuable part of a broader investment and tax planning strategy. This strategy, known as the Roth Backdoor IRA, allows people with high incomes to make indirect contributions. Since you've already paid income taxes, you can withdraw your contributions from a Roth IRA without penalty, whenever you want. Because you didn't receive a tax deduction for your contributions when you made them, only IRA earnings will be taxable.
One method of conversion is to take a distribution from the traditional IRA and contribute (rollover) it to a Roth IRA within 60 days of the distribution date.