The Backdoor Roth IRA: Step-by-Step for High Earners
In 2026, single filers earning above $168,000 and joint filers above $252,000 cannot make direct Roth IRA contributions. Except they can - through the Backdoor Roth IRA.
The Two-Step Process
- Contribute to a non-deductible traditional IRA. Anyone with earned income can do this regardless of income. 2026 limit: $7,500 ($8,600 age 50+).
- Shortly after the contribution settles, convert the full balance to your Roth IRA.
- File Form 8606 with your tax return.
The Pro-Rata Rule
The Annual Rhythm
Most high earners make this an annual habit: contribute $7,500 in January, wait a few days, convert, file Form 8606. Done. Five years of this, and you have a meaningful Roth balance growing completely tax-free.
What would you do?
Priya earns $290,000 as a senior engineer. She wants to do a $7,500 backdoor Roth IRA contribution. Two scenarios based on her existing IRA situation.
Your Move
Check your IRS Form 5498 or log into your IRA accounts. Look for any pre-tax IRA balances: rollover IRAs, SEP-IRAs, SIMPLE IRAs. If you have them, research the 'reverse rollover' - moving those balances into your current employer's 401(k) - to clear the path for a clean backdoor.
Sources
- Internal Revenue Service, Notice 2025-67
2026 retirement plan limits (401(k), IRA, SIMPLE, catch-up)
Educational information only. Not financial, tax, or legal advice or a recommendation. Figures are drawn from the primary sources cited above; verify current amounts with the source before acting.
Educational content only. Not financial, tax, or legal advice. Consult a qualified professional before making decisions based on your specific circumstances.
Last reviewed: April 2026