Backdoor Roth IRA
retirementAlso known as: backdoor Roth, backdoor Roth conversion
Updated · Written and reviewed by Konstantin Iakovlev
Detailed explanation
Roth IRA direct contributions phase out at $146K AGI single / $230K MFJ in 2026. The backdoor strategy bypasses this: (1) contribute up to $7,500 ($8,500 at 50+) to a NEW non-deductible traditional IRA (no income limits on non-deductible contributions). (2) Soon after, convert that traditional IRA to Roth (no income limits on conversions since 2010). The conversion is tax-free (since contributions were already after-tax). Pitfall: pro-rata rule — if you have OTHER pre-tax IRA balances (rollover IRA, SEP-IRA), the conversion is partially taxable proportional to the pre-tax/total ratio. Mitigation: roll pre-tax IRAs into your 401(k) first.
Use these calculators to apply this concept
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