Backdoor Roth IRA Calculator

What Is a Backdoor Roth IRA?

A backdoor Roth IRA is a two-step maneuver that lets high-income earners contribute to a Roth IRA even when their income exceeds the direct contribution limits. You make a non-deductible contribution to a traditional IRA, then convert it to a Roth IRA. Because the contribution was already taxed and the conversion happens quickly, the taxable conversion amount is near zero — unless you have other pre-tax IRA money, which triggers the pro-rata rule.

2026 Income Limits That Trigger the Backdoor

For 2026, direct Roth IRA contributions phase out between $150,000-$165,000 (single) and $236,000-$246,000 (married filing jointly). Above those caps, direct Roth is blocked — but there is no income limit on traditional IRA contributions or conversions, which is why the backdoor works. The annual IRA contribution limit in 2026 is $7,000 ($8,000 if age 50+).

The Pro-Rata Rule Explained

If you have any pre-tax money across all traditional, SEP, or SIMPLE IRAs, the IRS treats your conversion as a proportional mix of pre-tax and after-tax dollars. Example: you have $93,000 pre-tax and contribute $7,000 after-tax. The 7% after-tax / 93% pre-tax ratio means your $7,000 conversion is only 7% tax-free — you owe ordinary income tax on $6,510 of it. To avoid this, roll pre-tax IRA money into a 401(k) first, leaving only after-tax dollars in IRAs before converting.

Backdoor Roth Step-by-Step

Step 1: Contribute up to $7,000 (or $8,000 if 50+) to a traditional IRA as a non-deductible contribution. Step 2: File Form 8606 to establish basis. Step 3: Convert the traditional IRA balance to Roth — ideally within days, before any gains accrue. Step 4: Report the conversion on your tax return. If done with no other pre-tax IRA balances, the taxable event is near $0 and the money grows tax-free in the Roth forever.