Updated 2026-03-30
Backdoor Roth Strategy Guide
A step-by-step guide to the backdoor Roth strategy with a pro-rata rule calculator
The backdoor Roth is a two-step strategy that lets high earners contribute to a Roth IRA regardless of income. Make a nondeductible Traditional IRA contribution, then convert it to a Roth IRA. Be aware of the pro-rata rule if you have existing Traditional IRA balances.
Steps to Execute a Backdoor Roth
- Step 1: Confirm your income exceeds the Roth IRA direct contribution limit
- Step 2: Make a nondeductible Traditional IRA contribution
- Step 3: Convert the Traditional IRA to Roth IRA
- Step 4: Report on Form 8606 with your tax return
- Step 5: Repeat annually and track your basis
Pavlo Pyskunov
Managing Director & Investment Fund Director
Pavlo Pyskunov analyzes employer-sponsored retirement plans using IRS publications and DOL Form 5500 filings, helping workers maximize their 401(k) savings through data-driven guidance.
Last updated: 2026-03-30