Backdoor Roth IRA
The Backdoor Roth IRA is a legal strategy that allows high-income earners who exceed Roth IRA income limits to still contribute to a Roth IRA. You contribute to a Traditional IRA (non-deductible) and then convert it to a Roth IRA.
2026 IRS Contribution Limits
Conversion Amount$7,000
50+ Conversion$8,000
No Income LimitFor conversions
Tax on ConversionOnly on gains
Key Details
Step 1: Contribute to a Traditional IRA (non-deductible if over income limits).
Step 2: Convert the Traditional IRA balance to a Roth IRA shortly after.
Step 3: Report the non-deductible contribution on IRS Form 8606.
Beware of the pro-rata rule: if you have other pre-tax IRA balances, the conversion will be partially taxable.
Consider rolling existing Traditional IRA balances into a 401(k) to avoid the pro-rata rule.
There is no limit on the number of conversions per year, and no income limit for conversions.