If your income exceeds the Roth IRA limit, you can still contribute via the backdoor Roth. Two steps: contribute to a Traditional IRA, then convert to Roth. This page walks through the mechanics, the pro-rata rule that trips up most people, and how to report it on Form 8606.
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This is the mechanics as of 2026. Tax law changes. Verify current limits and rules on IRS.gov before executing. The pro-rata rule is where most people lose money; read that section carefully. Not financial or tax advice.
Two steps. Contribute to a Traditional IRA (no deduction because your income is too high). Convert that balance to Roth. The trap: if you have other pre-tax IRA money anywhere (Traditional IRA, SEP, SIMPLE), the pro-rata rule makes your conversion partially taxable. Roll those old balances into your 401(k) first so the backdoor works cleanly.
Roth IRA direct contribution phase-outs for 2026 🔍 verify×DON'T TRUST, VERIFYClaim: 2026 Roth IRA MAGI phase-out estimated: Single $150k-$165k, MFJ $236k-$246k.Verify at: IRS Roth IRA contribution limits ↗Phase-outs indexed for inflation. Confirm exact 2026 figures when released.:
Above these limits, direct Roth contribution is not allowed. The backdoor route is always available, regardless of income.
If you have any pre-tax IRA money (Traditional IRA, SEP IRA, SIMPLE IRA), the IRS treats ALL your IRAs as a single account for calculating the taxable portion of your conversion 🔍 verify×DON'T TRUST, VERIFYClaim: The pro-rata rule applies across all traditional, SEP, and SIMPLE IRAs when calculating taxable portion of a Roth conversion.Verify at: Form 8606 instructions ↗401(k)s are excluded from the calculation, which is why the rollover fix works.. 401(k)s are excluded from the calculation, which is the workaround.
Roll your existing pre-tax Traditional IRA into your employer 401(k) plan if it accepts incoming rollovers. Most large-employer plans do. After that rollover, you have no pre-tax IRA money, the pro-rata rule does not apply to your backdoor conversion, and the backdoor works cleanly. Do this step first. Do not contribute to the Traditional IRA and then figure out the rollover later.
Now that the money is in the Roth IRA, invest per your plan. Index funds, target date funds, or whatever your allocation calls for.
When you file your taxes: Form 8606 Part I reports the non-deductible contribution. Part II reports the conversion. This establishes your basis and prevents double taxation. Most tax software handles this if you correctly enter the 1099-R from the conversion and the Form 5498 from the contribution 🔍 verify×DON'T TRUST, VERIFYClaim: Form 8606 Parts I and II are required to correctly report backdoor Roth contributions and conversions.Verify at: Form 8606 instructions ↗Missing Form 8606 filings can lead to double taxation years later..
If $7,500 grows to $7,600 before you convert, the $100 gain is taxable income. Keep it in money market until converted.
Cleaner Form 8606 reporting. Technically the contribution can be for the prior year until April 15, but match the conversion year when possible.
You will receive a 1099-R for the conversion. Expected. Code 2 or 7 in Box 7. Report it correctly.
Last updated 2026-04-22. Not financial or tax advice. Consult a CPA for your specific situation.