Backdoor Roth IRA Calculator 2026

Retirement

How the backdoor Roth IRA works in 2026

Roth IRA contributions phase out at higher incomes, but conversions have no income limit — that gap is the "backdoor." You contribute up to $7,500 ($8,600 if 50 or older) to a nondeductible traditional IRA for 2026, then convert it to a Roth. If you have no other pre-tax IRA money, the conversion is essentially tax-free because you already paid tax on the contribution.

The pro-rata rule is the catch

The IRS does not let you cherry-pick only the after-tax dollars. Under the pro-rata rule (reported on Form 8606), every conversion is treated as a proportional mix of all your traditional, SEP and SIMPLE IRA balances as of December 31. If part of that pool is pre-tax, that same fraction of your conversion is taxable.

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Worked example: You make a $7,500 nondeductible contribution but already hold a $42,500 rollover IRA from an old 401(k). Total IRA = $50,000, of which 85% is pre-tax. So 85% of your $7,500 conversion — $6,375 — is taxable. At a 24% rate that is about $1,530 in tax, and only $1,125 converts tax-free. With no pre-tax IRA, the same $7,500 converts for $0 tax.

How to avoid the pro-rata problem

A common fix is to "roll up" pre-tax IRA money into your current employer’s 401(k) before December 31 — 401(k) balances are excluded from the pro-rata calculation, leaving only after-tax dollars in your IRAs. Then the backdoor conversion is clean. This calculator shows exactly how much tax a lingering pre-tax balance is costing you.

If you want to move a larger pre-tax balance into Roth deliberately, model it with the Roth conversion tax calculator. Inside a 401(k), high earners can stack the mega backdoor Roth on top. Compare Roth vs pre-tax saving with the Roth vs traditional 401(k) calculator.

Questions

Backdoor Roth IRA Calculator 2026 FAQ

How much can I put into a backdoor Roth in 2026?

The backdoor Roth uses the regular IRA contribution limit: $7,500 for 2026, or $8,600 if you are age 50 or older (a $1,100 catch-up). You make a nondeductible contribution to a traditional IRA up to that limit, then convert it to a Roth IRA.

What is the pro-rata rule?

When you convert, the IRS treats the conversion as a proportional blend of all your traditional, SEP and SIMPLE IRA balances as of December 31, not just the after-tax dollars. If, say, 80% of your total IRA money is pre-tax, then 80% of the converted amount is taxable income. It is reported on Form 8606.

How do I make my backdoor Roth tax-free?

Eliminate pre-tax IRA balances before year-end — typically by rolling them into your current employer’s 401(k), which is excluded from the pro-rata calculation. With only your fresh nondeductible contribution left in IRAs, the conversion is essentially tax-free.

Is the backdoor Roth still allowed in 2026?

Yes. As of 2026 the backdoor Roth remains a legal, widely used strategy. There is no income limit on Roth conversions, which is what makes it work. Always confirm current rules, since proposals to limit it have surfaced from time to time.

Reviewed & maintained by

Mustafa Bilgic — Editor, SalaryCalculator.us

IRA limits follow IRS Notice 2025-67; the pro-rata rule and basis tracking follow IRC §408(d) and IRS Form 8606 instructions.

Sources: IRS Notice 2025-67 (2026 IRA limit $7,500) · IRS Form 8606 instructions (nondeductible IRAs) · IRC §408(d)(2) pro-rata rule · IRS Publication 590-A.
🔄 Last updated June 27, 2026 · Tax year 2026

Disclaimer: Educational estimate, not financial or tax advice; the operator is not a CPA or financial adviser. Your taxable amount depends on year-end IRA balances and your full return. Confirm with a tax professional before converting.

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Backdoor Roth IRA Calculator (2026)

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