What is the backdoor Roth IRA strategy?

Make a non-deductible traditional IRA contribution (no income limit), then convert to Roth IRA. Allows high-income earners who exceed Roth income limits to still fund a Roth IRA.

How does the pro-rata rule affect backdoor Roth?

If you have pre-tax IRA balances, the pro-rata rule requires that all conversions be proportionally taxable. Example: $100K pre-tax IRA plus $7K non-deductible means 93.5% of any conversion is taxable.

What is the mega backdoor Roth?

Contribute after-tax money to a 401k up to the $69,000 limit, then convert to Roth 401k or roll to Roth IRA. Requires plan to allow after-tax contributions and in-service distributions.

What is the 5-year rule for Roth conversions?

Each conversion has its own 5-year clock for penalty-free withdrawal of converted amounts. The Roth IRA earnings 5-year clock starts with your first Roth contribution or conversion.

Should I convert to Roth now or wait?

Convert when your current tax rate is lower than your expected future rate. Early retirement or a year with low income creates an opportunity. Compare current conversion tax to the tax saved on future RMDs.

US Backdoor Roth Conversion Tax Calculator

Calculate tax on backdoor Roth IRA conversion. Pro-rata rule: taxable portion = (pre-tax IRA balance divided by total IRA balance) times converted amount. Shows Form 8606 calculation and 10-year rule.

Use the full interactive calculator below, or

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Frequently Asked Questions

What is the backdoor Roth IRA strategy?

How does the pro-rata rule affect backdoor Roth?

What is the mega backdoor Roth?

What is the 5-year rule for Roth conversions?

Should I convert to Roth now or wait?