Retirement
intermediate · $50K - $100K
If you earn over $153K single ($242K married) in 2026 - where Roth contributions start phasing out - or over $168K single ($252K married) where you're fully ineligible, the Backdoor Roth lets you contribute anyway.
Contribute to a non-deductible Traditional IRA, then immediately convert to Roth.
Same result, 100% legal.
This is widely used by high earners and is explicitly allowed by the IRS.
Annual Limit
$7,500 ($8,600 if 50+) - 2026
Tax Benefit
Tax-free growth despite high income (circumvents income limits)
Requirements
- Income exceeds Roth IRA limits ($168K single / $252K married in 2026)
- No existing Traditional IRA balances (to avoid pro-rata rule)
- Consult tax professional if you have Traditional IRA funds
How to Implement
- 1Contribute $7,500 to non-deductible Traditional IRA
- 2Wait 1-2 days for contribution to settle
- 3Convert entire Traditional IRA to Roth IRA
- 4File Form 8606 with taxes to document non-deductible contribution
- 5Repeat annually
Frequently Asked Questions
Understanding IRA Types: Employer vs Individual
Many people don't realize you can contribute to BOTH a workplace retirement plan AND an individual IRA. That's up to $32,000/year in tax-advantaged savings!
| Account Type | Contribution | Through | 2026 Limit | Catch-up |
|---|---|---|---|---|
Employer 401(k) | Pre-tax | Employer | $24,500 | +$8,000 (50+) +$11,250 (60-63) |
Roth 401(k) | After-tax | Employer | $24,500 | +$8,000 (50+) +$11,250 (60-63) |
Traditional IRA | Pre-tax | Individual | $7,500 | +$1,100 (50+) |
Roth IRA | After-tax | Individual | $7,500 | +$1,100 (50+) |
The limits are separate - a 401(k) and an IRA can be funded in the same year
If you have access to a 401(k) at work, you can still contribute to a Traditional or Roth IRA on your own. Combined, that's $32,000 in annual tax-advantaged contributions (before catch-up).
High Earner? You Have Options!
If your income exceeds Roth IRA limits ($168,000 single / $252,000 married):
- Backdoor Roth IRA - Contribute to Traditional IRA, then convert to Roth
- Mega Backdoor Roth - Add up to $47,500+ more via after-tax 401(k)
44%
of US households own IRAs
16%
of households contribute annually
26%
own Roth IRAs specifically
74%
have some tax-advantaged savings
Featured Providers
- Fidelity
- Vanguard
- Schwab
Related retirement strategies
Sources
- Internal Revenue Service, Rev. Proc. 2025-32
2026 inflation-adjusted amounts (tax brackets, standard deduction, estate & gift, FSA, credits)
- Internal Revenue Service, Notice 2025-67
2026 retirement plan limits (401(k), IRA, SIMPLE, catch-up)
- Internal Revenue Service, Rev. Proc. 2025-19
2026 HSA and HDHP inflation-adjusted limits
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.