Backdoor Roth IRA Tax & Pro-Rata Rule Calculator
Calculate taxes owed on a Backdoor Roth IRA conversion, IRS Form 8606 pro-rata taxable ratio, income phaseout eligibility, and non-taxable basis.
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Frequently Asked Questions
What is a Backdoor Roth IRA?
A Backdoor Roth IRA is an IRS-sanctioned method for high-income earners whose earnings exceed statutory annual Roth IRA contribution limits. You make a nondeductible contribution to a Traditional IRA and immediately convert that money into a Roth IRA.
What is the IRS Pro-Rata Rule?
The Pro-Rata Rule (IRS Form 8606) treats all of your non-Roth IRA accounts (Traditional, SEP, SIMPLE IRAs) as one collective pool. If you have existing pre-tax dollars in any of these accounts, you cannot convert only your after-tax contribution tax-free; taxes are apportioned pro-rata.
How do I avoid the Pro-Rata tax penalty entirely?
To execute a completely tax-free Backdoor Roth IRA, roll over all pre-tax Traditional, SEP, or SIMPLE IRA balances into your employer's current active 401(k) or 403(b) plan before December 31st of the tax conversion year.
What are the 2026 Roth IRA income phaseout limits?
For 2026, the Roth IRA phaseout for single filers is approximately $150,000 to $165,000. For married couples filing jointly, the phaseout range is $236,000 to $246,000. Above these thresholds, direct contributions are prohibited.