Finance & Economics / Personal Finance
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.
The Process:
- 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
Key Rules:
- 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
Avoiding the Pro-Rata Rule:
- 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.
See Also
Other calculators in Personal Finance
Compound Interest Calculator
Open calculator
Loan Payment Calculator
Open calculator
Mortgage Calculator
Open calculator
Retirement Savings Calculator
Open calculator
Debt Payoff Strategy Calculator (Avalanche vs Snowball)
Open calculator
Compound Interest Calculator with Variable Contributions
Open calculator
Emergency Fund Months Calculator
Open calculator
Debt Avalanche vs Snowball Comparison Calculator
Open calculator
Loan Amortization with Extra Payments Calculator
Open calculator
Investment Compound Growth Calculator (Dollar Cost Averaging)
Open calculator
Take-Home Pay Calculator
Open calculator
Rent vs Buy Decision Calculator
Open calculator
Roth IRA Conversion Tax Impact Calculator
Open calculator
Required Minimum Distribution (RMD) Calculator
Open calculator
Social Security Break-Even Calculator
Open calculator
Pension Lump Sum vs Annuity Calculator
Open calculator
4% Rule Retirement Calculator
Open calculator
Mega Backdoor Roth Calculator
Open calculator