Frequently Asked Questions
What is a Backdoor Roth IRA?
A Backdoor Roth IRA is a legal strategy for high earners who exceed Roth IRA income limits. You contribute to a Traditional IRA (non-deductible), then convert it to a Roth IRA. The conversion is taxed on any gains above your contribution.
Is a Backdoor Roth IRA legal?
Yes, the Backdoor Roth IRA is legal. There is no income limit on Roth conversions, only on direct Roth contributions. The IRS has never challenged this strategy, though Congress has considered closing it.
What is the pro-rata rule?
The pro-rata rule means you cannot convert only the non-deductible portion of your Traditional IRA. All Traditional IRA balances are combined, and the taxable portion of your conversion is proportional. If you have pre-tax IRA money, some of the conversion will be taxable.
What are the Roth IRA income limits for 2026?
For 2026, direct Roth IRA contributions phase out at $150,000 MAGI (single) and $236,000 (married filing jointly). Above these limits, you need the backdoor strategy. The conversion itself has no income limit.
How do I avoid the pro-rata rule?
The cleanest way to avoid pro-rata is to roll all pre-tax Traditional IRA money into your employer's 401(k) before doing the backdoor conversion. This leaves only the non-deductible contribution in your IRA, making the conversion 100% tax-free.
Should I do a backdoor Roth every year?
If your income exceeds Roth limits and you've cleared the pro-rata rule, yes — doing a backdoor Roth every year maximizes tax-free growth. Many high earners do this annually. The sooner you convert, the more tax-free growth you accumulate.