Is the Backdoor Roth legal?

Yes. Congressional committee reports in 2017 clarified that the strategy is permitted under existing law.

What is the Pro-Rata Rule?

The IRS looks at ALL your IRA accounts combined. If you have pre-tax IRAs, only a portion of your conversion would be tax-free.

Backdoor Roth IRA Calculator

Calculate your direct Roth limits and determine if the backdoor strategy is right for you in 2026.

Calculate Your Results

Adjust the values to see how your numbers change

What is a Backdoor Roth IRA?

A Backdoor Roth IRA is not a specific type of account, but a legal tax strategy used by high-income earners who are over the IRS income limits for direct Roth IRA contributions.

By contributing to a Traditional IRA (which has no income limit for contributions) and then immediately converting those funds to a Roth IRA, you can effectively bypass the income limits and benefit from tax-free growth and withdrawals.

How to Use This Calculator

Check Filing Status - Phase-out limits vary significantly between Single and Married filers.
Input MAGI - Use your Modified Adjusted Gross Income (typically your Gross Income minus some deductions).
Check Existing IRAs - If you have other pre-tax IRAs (Traditional, SEP, SIMPLE), the Pro-Rata rule may apply.
Follow Steps - Review the generated roadmap below to see the exact execution steps.

Calculation Formula & Example

The Formula

Direct Limit = Max ($7k) - ((MAGI - PhaseStart) / (PhaseEnd - PhaseStart) * Max)

Where:

PhaseStart = $153k (Single) / $238k (Joint) for 2026
PhaseEnd = $168k (Single) / $248k (Joint) for 2026

Example Calculation

A single filer making $160,500 is in the middle of the phase-out. Their direct contribution limit would be reduced by 50%, allowing only $3,500 directly. The remaining $3,500 must be 'backdoored'.

Benefits of Using This Calculator

No Income Cap - Allows anyone, regardless of how much they earn, to save in a Roth vehicle.
Tax-Free Growth - Unlike a brokerage account, you pay $0 in capital gains taxes on your investments.
No RMDs - Roth IRAs do not require mandatory withdrawals during the owner's lifetime.

Calculator Use Cases

High Earner Strategy

Ideal for professionals (MDs, Software Engineers, Lawyers) earning over $168k.

Early Retirement

Building a tax-free bucket of money for flexible withdrawals later in life.

Frequently Asked Questions

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