Once income climbs past the Roth IRA contribution limit, direct contributions aren’t an option anymore — but the “backdoor” route still is, and it’s less complicated than the name suggests.
The two-step version
| Step | What happens |
|---|---|
| 1 | Contribute to a traditional IRA (no income limit on contributions) |
| 2 | Convert that contribution to a Roth IRA shortly after |
The part people trip on
If you already have other pre-tax IRA money sitting around, the conversion gets taxed proportionally — the “pro-rata rule.” It’s worth understanding before converting, not after.
This isn’t a strategy to improvise. A five-minute conversation with a tax professional before your first conversion is worth far more than guessing.
