Backdoor Roth IRA
Explore: well supported, often missed.
A Roth IRA grows tax-free and comes out tax-free in retirement, but above certain incomes you can't contribute to one directly. The backdoor Roth is the legal way around that limit.
You put money into a traditional IRA without taking a deduction, then convert it to a Roth. There's no income limit on conversions, so high earners can still build Roth savings every year.
How it works
Above certain incomes you can’t put money straight into a Roth IRA. You can put it in a traditional IRA without a deduction and convert it to a Roth, after which it grows tax-free.
What makes it hold up
- Form 8606 filed for each year
- The balance of every pre-tax IRA you own on December 31
- Dates of the contribution and the conversion
Risks
Low. Other pre-tax IRA money makes part of the conversion taxable (the “pro rata” rule); rolling it into a 401(k) first can fix that.
Questions to ask your CPA
- Do I have pre-tax IRA money that spoils this?
- Can my spouse do one too?
Common questions
Is the backdoor Roth legal?
Yes. Conversions have had no income limit for years, and Congress has left the approach in place. File Form 8606 each year to report it correctly.
What is the pro rata rule?
If you have other pre-tax money in any traditional, SEP or SIMPLE IRA, part of each conversion becomes taxable. Rolling that pre-tax money into a 401(k) before you convert can avoid it.
Can my spouse do one too?
Yes. Each spouse has their own IRA limit, so a married couple can usually do two backdoor contributions a year.
How soon should I convert?
Many people convert shortly after contributing so there's little or no growth to tax. Your CPA can confirm the timing for your accounts.
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Education, not advice. Tax law changes and every situation is different, so confirm the details with your CPA or tax advisor before acting. This page was last checked against tax law as of October 2026, including the 2025 tax law, in October 2026.