Backdoor Roth IRA Explained: How High Earners Avoid Income Limits

Backdoor Roth IRA explained (2026): how high-income earners can legally contribute to a Roth IRA, step-by-step, and avoid the pro-rata rule tax trap.

 

If your income is too high to contribute directly to a Roth IRA, the Backdoor Roth strategy is one of the most important ways to still build tax-free retirement income—but it has to be done correctly.

 

In this episode, we break down:

• 2026 Roth IRA income limits and contribution limits
• How the Backdoor Roth IRA works step-by-step
• How to make a non-deductible IRA contribution and convert it to Roth
• The pro-rata rule and how it can trigger unexpected taxes
• How to handle existing Traditional, SEP, or SIMPLE IRA balances
• When a spousal Backdoor Roth makes sense

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