Tax Playbook · Keep more of each paycheck
Backdoor Roth IRA
Make too much money for a Roth IRA? There's a legal workaround: put money in a regular IRA without taking a tax deduction, then move it into a Roth. From then on it grows tax-free forever. Report it on tax form 8606 — and it works best if you don't already have money sitting in a regular IRA, because of a tricky rule called the pro-rata rule.
Good for: High earners who make too much for a regular Roth IRA.
Learn the basics
Recent articles & guides
- Kitces — backdoor Roth while avoiding the aggregation rule
- Kitces — backdoor Roth conversion strategy
- White Coat Investor — backdoor Roth IRA origins
On this site
Related strategies
529 plans — and the Roth rolloverA 529 is a savings jar for college: the money grows tax-free, and many states give you a tax break for putting…Max out pre-tax retirement accountsPut money in a 401(k) before taxes are taken out, and you skip paying tax on it this year. In 2026 you can put…Mega backdoor RothSome 401(k) plans let you put in extra after-tax money — far more than the normal limit — and then slide it in…HSA: the triple tax breakAn HSA is the only account with three tax breaks in one: money goes in tax-free, grows tax-free, and comes out…Solo 401(k) for side gigsIf you run your own business, you can save for retirement as both boss and worker. In 2026 you can put in up t…The 457(b) double-dipIf your employer offers both a 457(b) and a 401(k) or 403(b), you get two separate savings limits. Each plan l…
Browse all 97 strategies in the interactive playbook
Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.