2026 rules

Backdoor Roth IRA planning

How much of your Roth conversion may be taxable?

Model the IRA pro-rata rule using the same building blocks as Form 8606, then check whether a direct Roth contribution or a workplace-plan “mega backdoor” may fit instead.

Enter your conversion-year totals

Use the totals for all of your traditional, SEP and SIMPLE IRAs—not only the account being converted.

Usually last year’s Form 8606, line 14.

Do not include a contribution made in 2027 for 2026 here.

Combined year-end value of traditional, SEP and SIMPLE IRAs.

Exclude the Roth conversion itself.

%

Optional combined rate for a rough tax-cost estimate.

Do you need the backdoor at all?

Direct Roth IRA eligibility depends on filing status and modified adjusted gross income (MAGI). This quick screen shows the 2026 phase-out band; it does not calculate the reduced contribution inside the band.

Above the direct-contribution range

At this MAGI, a direct Roth IRA contribution is unavailable under the 2026 limit. A backdoor strategy may be worth discussing if the other rules fit.

  • Single / head of household$153,000–$168,000 phase-out
  • Married filing jointly$242,000–$252,000 phase-out
  • Married filing separately, lived together$0–$10,000 phase-out

Estimate mega backdoor Roth room

A mega backdoor strategy is separate from the IRA backdoor. It depends on a 401(k) or similar plan accepting after-tax employee contributions and allowing an in-plan Roth rollover or a suitable distribution.

Exclude catch-up contributions.

Include after-tax amounts already contributed and forfeitures allocated.

$38,500

That is the remaining space below the lower of 100% of compensation or the $72,000 annual-additions cap. Your plan can impose a lower limit.

2026 annual-additions ceiling used$72,000
Contributions already counted$33,500
Regular elective-deferral limit$24,500

Age-based catch-up contributions are outside the $72,000 annual-additions limit. Plan terms, testing and payroll cutoffs can reduce what is actually available.

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