Do a backdoor Roth IRA
Earn too much to fund a Roth directly? The backdoor route is legal and simple — but the pro-rata rule and Form 8606 trip up people who skip a step.
Check you’re over the limit
A direct Roth IRA phases out at higher incomes. We check your MAGI — if you’re over, the backdoor is the clean route in.
Step by step
The same journey, written out — so you can read it at your own pace.
- Check you’re over the limit
A direct Roth IRA phases out at higher incomes. We check your MAGI — if you’re over, the backdoor is the clean route in.
- Fund a nondeductible IRA
Put your contribution into a Traditional IRA as a nondeductible (after-tax) contribution — this creates basis you’ll report.
- Convert to Roth
Convert the Traditional IRA to a Roth. With no other pre-tax IRA money, the pro-rata rule means the conversion is essentially tax-free.
- Report it on Form 8606
We complete Form 8606 so the IRS sees the contribution was after-tax and the conversion isn’t taxed twice — the step most people miss.
Common questions
What is the pro-rata rule?
If you hold other pre-tax (deductible) IRA money, the IRS treats your conversion as a proportional mix of pre-tax and after-tax dollars, so part becomes taxable. The backdoor is cleanest when your only Traditional IRA balance is the new nondeductible contribution.
Is this legal?
Yes — it’s a well-established, IRS-recognised sequence. The key is reporting it correctly on Form 8606 and watching the pro-rata rule.
Do the backdoor Roth right
AI TaxPilot walks the contribution, the conversion and Form 8606 — and flags the pro-rata rule before it bites.
Start freeThis guide is general information, not personal tax advice, and reflects the rules we believe to apply as at June 2026 — rates and thresholds change. Always check your own figures against the IRS and consider a qualified adviser before acting. You remain responsible for the accuracy of anything you file.
Go deeper
The full guides and articles behind this journey.
401(k), IRA, HSA and the rest — limits, phase-outs, the SECURE 2.0 super catch-up and OBBBA changes for 2026.
Brackets and the standard deduction, marginal vs effective rates, FICA, retirement accounts, capital gains and the OBBBA changes.
Deductible going in, tax-free growth, tax-free withdrawals. The most under-used account in US tax — used right, it can beat your 401(k).
More flight plans
File your Self Assessment
From a blank return to filed-with-HMRC in one sitting — your figures pulled in, the maths checked, the SA100 submitted.
Build & file your company accounts
Turn a year of bank transactions into FRS 105 micro-entity accounts and file the iXBRL to Companies House — without a spreadsheet in sight.
File your Corporation Tax (CT600)
Carry your accounts into the CT600, let us handle marginal relief and the adjustments, and file the return plus computation to HMRC.