Backdoor Roth IRA Calculator

A backdoor Roth IRA is a two-step strategy that lets high-income earners contribute to a Roth IRA even if they exceed the direct contribution income limits ($165,000 single / $246,000 MFJ for 2025). You first make a non-deductible contribution to a traditional IRA (no income limit), then convert those funds to a Roth IRA. While the conversion may trigger some tax if you have other pre-tax IRA funds (due to the pro-rata rule), the money then grows tax-free forever.

The IRS pro-rata rule (IRC §408(d)(2)) requires that all your traditional, SEP, and SIMPLE IRA balances be treated as a single pool when calculating the taxable portion of any conversion. If you have $93,000 in pre-tax IRA funds and contribute $7,000 non-deductible, only 7% of your conversion is tax-free — the other 93% is taxable income. To avoid the pro-rata rule, consider rolling your pre-tax IRA funds into your employer's 401(k) plan before doing the backdoor conversion.

The backdoor Roth is most beneficial for high-income earners who exceed the direct Roth IRA income limits, expect to be in a similar or higher tax bracket in retirement, and have no (or minimal) existing pre-tax IRA balances — or can roll pre-tax funds into a 401(k) to sidestep the pro-rata rule. It is especially powerful for younger investors with many years for tax-free growth to compound.

For 2025, the ability to contribute directly to a Roth IRA phases out at $150,000–$165,000 for single filers and at $236,000–$246,000 for married filing jointly. Above these limits, direct contributions are not allowed — but the backdoor strategy has no income limit. The annual IRA contribution limit is $7,000 ($8,000 if you are age 50 or older).

For 2026, the IRA contribution limit rises to $7,500 ($8,600 if age 50+) — the first-ever inflation increase to the age-50+ IRA catch-up, per IRS Notice 2025-67. The direct Roth IRA phase-out also moves up to $153,000–$168,000 for single filers and $242,000–$252,000 for married filing jointly. As with every year, the backdoor strategy itself has no income limit — only the direct-contribution phase-out changes.