Roth IRA Backdoor Conversion Guide for High-Income Savers (2026)
Implement backdoor Roth IRA conversion: Traditional IRA contribution, conversion process, pro-rata rule avoidance, and tax implications for high earners.
Summary
Backdoor Roth enables Roth access for high earners. This guide explains contribution, conversion, pro-rata rule, and implementation steps.
Key Steps
- 1Contribute to Traditional IRA: make nondeductible contribution (no income limit).
- 2Convert to Roth IRA: convert Traditional to Roth, nondeductible portion tax-free.
- 3Avoid pro-rata rule: ensure no existing Traditional IRA balance before conversion.
- 4Complete conversion quickly: convert immediately after contribution to minimize growth.
- 5Track basis: file Form 8606 to track nondeductible contributions and conversions.