Backdoor Roth IRA Calculator
2024 limit: $7,000 ($8,000 if age 50+)
Include all Traditional, SEP, and SIMPLE IRAs. Enter 0 for "clean" backdoor Roth.
The portion of your existing IRA that was deductible (pre-tax). Usually equals the entire balance unless you've made non-deductible contributions before.
Federal tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%
What is a Backdoor Roth IRA?
A Backdoor Roth IRA is a legal strategy that allows high-income earners (who exceed Roth IRA income limits) to contribute to a Roth IRA indirectly.
- Make a non-deductible contribution to a Traditional IRA (no income limits)
- Immediately convert the Traditional IRA to a Roth IRA
- Report both steps on IRS Form 8606
- Pro-Rata Rule: If you have existing pre-tax IRA money, part of your conversion will be taxable
- No Income Limits: Anyone can do a Roth conversion regardless of income
- Step Transaction Doctrine: Wait a few days between contribution and conversion to avoid IRS scrutiny (though no official waiting period exists)
- Form 8606: Must be filed to track non-deductible basis and report conversions
- Roll pre-tax IRA money into your employer's 401(k) before doing backdoor Roth
- Convert all Traditional IRA assets to Roth (and pay taxes) to "clean up" your IRAs
- Only do backdoor Roth if you have $0 in Traditional/SEP/SIMPLE IRAs
Disclaimer: This calculator provides estimates. Consult a tax professional before executing a backdoor Roth IRA strategy.
Use this backdoor roth ira calculator to compute personal finance results from your inputs.
Formula
If no existing IRA: Tax on conversion = $0 (after-tax dollars) If existing pre-tax IRA: Pro-rata rule applies Taxable percentage = Pre-tax IRA balance / (Pre-tax balance + Contribution) Tax owed = Contribution × Taxable percentage × Tax bracket After-tax amount in Roth = Contribution - Tax owed