Backdoor Roth Eligibility Checker 2026
Roth IRA phase-outs, pro-rata rule, and conversion tax cost
Last updated: November 2025 · Sources: IRS Notice 2025-67, IRC §408A, §408(d)(2)
Your Tax Situation
Phase-out for single: $153,000 to $168,000.
Sum of all Traditional, SEP, and SIMPLE IRA balances. Excludes 401(k)s and inherited IRAs.
Cumulative after-tax contributions reported on Form 8606. Typically equals your planned nondeductible contribution this year.
Typically your nondeductible contribution ($7,500 for 2026, $8,600 at 50+).
Direct Roth blocked, use backdoor
Your MAGI of $200,000 exceeds the $168,000 phase-out ceiling. You cannot contribute directly to a Roth IRA. Use the backdoor procedure: contribute $7,500 to a Traditional IRA (nondeductible), then immediately convert to Roth.
Pro-Rata Calculation (Form 8606)
Understanding the 2026 Backdoor Roth
Why a "Backdoor"?
Roth IRAs have MAGI-based income limits for direct contributions (IRC §408A(c)(3)). For 2026, you cannot directly contribute if MAGI exceeds $168,000 (single) or $252,000 (MFJ). But there are NO income limits on Traditional IRA contributions (deductibility phases out, but you can still contribute nondeductibly) and NO income limits on Roth conversions (since 2010, when Congress repealed the $100k conversion AGI limit). The "backdoor" exploits this asymmetry: contribute nondeductibly to a Traditional IRA, then convert to Roth. Net effect: a $7,500 Roth contribution despite high income.
The Pro-Rata Aggregation Rule
IRC §408(d)(2) is the gotcha. When you convert, the IRS treats ALL your Traditional/SEP/SIMPLE IRAs as a single pot for computing the taxable portion: taxable % = pre-tax balance / total IRA value. If you have $93,000 in a rollover IRA (all pretax) and contribute $7,500 nondeductible, then convert $7,500: pro-rata = $93,000 / $100,500 = 92.5% taxable. You owe tax on $6,939 of the $7,500 conversion. The "backdoor" benefit shrinks to just $563 of nontaxable basis being moved to Roth. Pro-rata aggregation is the single biggest obstacle to the backdoor Roth strategy.
Cleaning Out Pre-Tax IRA Balances
The fix is to move pre-tax IRA money OUT of the IRA system. Two options: (1) Reverse rollover to 401(k): if your current employer's 401(k) accepts incoming rollovers (most do, check the SPD), roll your pre-tax IRA balance into it. 401(k) balances are NOT counted by the pro-rata rule, only IRAs are. (2) Convert the entire pre-tax balance to Roth in one year: pay all the tax now, then your IRA balance is $0 and future backdoors are clean. Option 1 is far more common, no tax cost. Inherited IRAs are excluded from aggregation, so they don't need to be moved.
Step-by-Step Backdoor Procedure
Step 1: confirm pre-tax IRA balance is $0 (or accept the pro-rata tax cost). Step 2: open a Traditional IRA at your custodian (Fidelity, Schwab, Vanguard). Step 3: contribute $7,500 ($8,600 at 50+) and mark as nondeductible (do NOT take a deduction on your tax return). Step 4: wait for funds to settle (1 day to 1 week). Step 5: convert the full Traditional IRA balance to your Roth IRA via your custodian's Roth conversion form. Step 6: at tax time, file Form 8606 Parts I (nondeductible contribution) and II (conversion). This documents your basis and avoids being taxed twice.
Mega Backdoor Roth
The "mega" version uses your 401(k), not your IRA, and can move FAR more money into Roth ($30,000-$50,000+ per year). Requires your 401(k) plan to allow: (1) after-tax (non-Roth) contributions beyond the $24,500 elective deferral limit, and (2) in-service withdrawals or in-plan Roth conversions of the after-tax balance. You contribute up to the $72,000 §415(c) cap as after-tax, then promptly convert to Roth. Only about 40% of 401(k) plans support this, common at large tech employers (Google, Microsoft, Amazon, Meta). Check the SPD or ask HR.
The Two 5-Year Rules
IRC §408A imposes two separate 5-year clocks. 5-year rule for earnings: your Roth IRA must be open at least 5 years before earnings can be withdrawn tax-free (the clock starts Jan 1 of the year of your first Roth contribution and never resets). 5-year rule for each conversion: each conversion (including backdoor) has its own 5-year clock. If you withdraw conversion principal within 5 years AND you're under 59½, the 10% early withdrawal penalty applies (income tax was paid at conversion, so no double tax). After 59½ OR 5 years, principal is freely withdrawable. Earnings always require 59½ + 5-year rule.
When Backdoor Is Not Worth It
Skip the backdoor if: (1) you have substantial pre-tax IRA balances and can't reverse-roll them into a 401(k) (the pro-rata tax cost exceeds the benefit); (2) you expect a much lower tax bracket in retirement (Roth advantage shrinks); (3) you're close to retirement and won't see meaningful tax-free compounding; (4) the administrative complexity and Form 8606 risk outweigh the modest $7,500 of Roth space. For most high-earners with a clean IRA setup and 15+ years to retirement, the backdoor adds $7,500/year of Roth space and is well worth the effort.
Frequently Asked Questions
How does the pro-rata rule work?
IRC §408(d)(2) aggregates ALL Traditional/SEP/SIMPLE IRAs into one pot for conversions. Taxable % = pretax balance / total IRA value. Big pretax balances + small nondeductible = mostly-taxable conversion, the pro-rata rule is the main obstacle to clean backdoor execution.
How do I clean out pretax IRA money?
Reverse-rollover your pretax IRA into your current employer's 401(k). 401(k) balances are NOT counted by the pro-rata rule. Most 401(k) plans accept incoming rollovers; complete by December 31 of the conversion year.
What is the step-by-step procedure?
1) Confirm pretax IRA = $0. 2) Open Traditional IRA. 3) Contribute $7,500 nondeductible. 4) Wait for funds to settle. 5) Convert to Roth IRA. 6) File Form 8606 with your tax return to establish basis and avoid double taxation.
What is a mega backdoor Roth?
Uses your 401(k) (not IRA) to move tens of thousands per year into Roth. Requires plan support for after-tax contributions and in-service Roth conversions. Common at large tech employers; only about 40% of plans allow it.
What are the two 5-year rules?
(1) Earnings 5-year rule: your Roth must be open 5 years before earnings withdraw tax-free (one-time clock). (2) Conversion 5-year rule: each conversion has its own 5-year clock for the 10% early withdrawal penalty (income tax was already paid at conversion).
When is direct Roth simpler?
If your MAGI is below $153,000 single / $242,000 MFJ for 2026, contribute directly to a Roth IRA, no backdoor needed. Backdoor only makes sense above the phase-out AND with a clean (zero pretax) IRA setup.