What are the 2026 IRA income limits for Roth contributions?

For 2026, single filers can contribute the full amount to a Roth IRA if their modified adjusted gross income (MAGI) is below $150,000. Contributions phase out between $150,000 and $165,000, and are not allowed above $165,000. For married filing jointly, the full contribution range is below $236,000, with phase-out between $236,000 and $246,000.

What is a backdoor Roth IRA?

A backdoor Roth IRA is a strategy for high earners who exceed the Roth IRA income limits. You contribute to a traditional IRA (non-deductible) and then convert it to a Roth IRA. Since the contribution was non-deductible, you only pay tax on any earnings between the contribution and conversion. This is legal and widely used, but be aware of the pro-rata rule if you have other pre-tax IRA balances.

Can I contribute to both a Roth IRA and a traditional IRA?

Yes, but the combined annual contribution limit across all your IRAs is $7,000 for 2026 ($8,000 if age 50 or older). You can split this between Roth and traditional however you like, but you cannot exceed the total limit. For example, you could contribute $4,000 to a Roth IRA and $3,000 to a traditional IRA.

Should I convert my traditional IRA to a Roth IRA?

A Roth conversion makes sense when you expect your future tax rate to be higher than your current rate, you have a long time horizon for tax-free growth, you can pay the conversion taxes from non-retirement funds, or you want to reduce future required minimum distributions. It is generally not advisable if it pushes you into a significantly higher tax bracket or if you need the funds within five years.

What is the pro-rata rule for IRA conversions?

The pro-rata rule requires that when you convert or withdraw from a traditional IRA, the taxable portion is calculated based on the ratio of pre-tax to after-tax money across ALL your traditional, SEP, and SIMPLE IRAs — not just the specific account you convert. For example, if you have $95,000 in pre-tax IRA funds and convert a $5,000 non-deductible IRA, about 95% of the conversion ($4,750) would be taxable. This is critical to understand before attempting a backdoor Roth.

Roth IRA vs Traditional IRA: Complete Guide

Both Roth and traditional IRAs offer tax advantages for retirement savings, but they work in fundamentally different ways. This guide breaks down everything you need to choose the right one.

The Core Difference: When You Pay Taxes

The fundamental distinction between Roth and traditional IRAs is the timing of your tax benefit:

Traditional IRA: Tax deduction now, pay taxes on withdrawals in retirement.
Roth IRA: No tax deduction now, withdrawals in retirement are completely tax-free.

Think of it this way: with a traditional IRA, the IRS lets you defer your taxes. With a Roth IRA, you pay taxes now and never again on that money (assuming qualified withdrawals).

2026 Contribution Limits

Both Roth and traditional IRAs share the same annual contribution limit for 2026:

Under age 50: $7,000
Age 50 and older: $8,000 (includes $1,000 catch-up)

This is a combined limit across all your IRAs. If you have both a Roth and traditional IRA, your total contributions to both cannot exceed $7,000 (or $8,000 with catch-up).

Income Limits

Roth IRA Income Limits (2026)

Your ability to contribute directly to a Roth IRA depends on your modified adjusted gross income (MAGI):

Single filers: Full contribution below $150,000. Phase-out between $150,000 and $165,000. No direct contribution above $165,000.
Married filing jointly: Full contribution below $236,000. Phase-out between $236,000 and $246,000. No direct contribution above $246,000.

If your income falls in the phase-out range, you can contribute a reduced amount. If your income is above the limit, you cannot contribute directly — but you may still use the backdoor Roth strategy (covered below).

Traditional IRA Deduction Limits (2026)

Anyone with earned income can contribute to a traditional IRA regardless of income level. However, the tax deduction may be limited:

No employer retirement plan: Full deduction at any income level.
Covered by employer plan (single): Full deduction below $79,000 MAGI. Phase-out between $79,000 and $89,000.
Covered by employer plan (married filing jointly): Full deduction below $126,000 MAGI. Phase-out between $126,000 and $146,000.

If you cannot deduct traditional IRA contributions, a Roth IRA or backdoor Roth is usually more advantageous since non-deductible traditional IRA contributions create additional tax complexity.

Tax Treatment Comparison

Traditional IRA Tax Treatment

Deductible contributions reduce your taxable income in the year you contribute.
Investments grow tax-deferred — no taxes on dividends, interest, or capital gains while in the account.
All withdrawals in retirement are taxed as ordinary income (not capital gains rates).
Required minimum distributions (RMDs) start at age 73, forcing you to withdraw and pay taxes even if you don't need the money.

Roth IRA Tax Treatment

Contributions are made with after-tax dollars — no deduction.
Investments grow completely tax-free.
Qualified withdrawals (after age 59 1/2 and account open 5+ years) are 100% tax-free.
No required minimum distributions during your lifetime — money can grow tax-free indefinitely.
Contributions (not earnings) can be withdrawn at any time without taxes or penalties.

The Backdoor Roth IRA

High earners who exceed the Roth IRA income limits can still get money into a Roth IRA through the backdoor strategy:

Contribute to a traditional IRA. Make a non-deductible contribution of up to $7,000.
Convert to a Roth IRA. Shortly after contributing, convert the entire traditional IRA balance to a Roth IRA.
Pay taxes on any gains. If you convert quickly, there should be minimal or no gains to be taxed.

This strategy is legal and has been used by millions of Americans. However, there is one critical complication:

The Pro-Rata Rule

The pro-rata rule is the most commonly misunderstood aspect of backdoor Roth conversions. When you convert a traditional IRA to Roth, the IRS looks at the total balance across all your traditional, SEP, and SIMPLE IRAs — not just the one you are converting.

If you have any pre-tax IRA money, a portion of your conversion will be taxable based on the ratio of pre-tax to total IRA balances. For example:

You have $93,000 in a traditional IRA from old 401k rollovers (pre-tax money).
You contribute $7,000 to a new traditional IRA (non-deductible, after-tax).
Total IRA balance: $100,000 (93% pre-tax, 7% after-tax).
If you convert $7,000 to Roth, 93% ($6,510) is taxable.

To do a clean backdoor Roth, you ideally need zero pre-tax traditional IRA balances. One common solution is to roll any existing traditional IRA balances into your employer's 401k plan (if it accepts incoming rollovers), leaving only your non-deductible contribution to convert.

Roth Conversion Strategies

Beyond the backdoor Roth, converting existing traditional IRA or 401k funds to Roth can make sense in certain situations:

Low-income years: Between jobs, sabbaticals, or early retirement before Social Security and RMDs begin — your tax bracket may be unusually low.
Market downturns: Converting when your portfolio is depressed means paying less tax on a lower balance, with more recovery happening tax-free in the Roth.
RMD reduction: Converting now reduces your traditional IRA balance, which reduces future required minimum distributions and potentially lowers your Medicare premiums (IRMAA).
Estate planning: Roth IRAs pass to heirs tax-free (though beneficiaries must withdraw within 10 years under the SECURE Act). Paying the conversion tax now can leave more after-tax wealth to heirs.

How Much to Convert

The key is to convert just enough to fill up your current tax bracket without pushing into the next one. For example, if you are in the 22% bracket with $20,000 of room before the 24% bracket begins, converting $20,000 keeps all the conversion in the lower bracket. A tax professional can help you model this precisely.

Which IRA Is Right for You?

Choose Roth IRA if:

You are early in your career with lower income and expect higher future earnings.
You believe tax rates will increase in the future.
You want flexibility to withdraw contributions penalty-free.
You want to avoid required minimum distributions.
You want to leave tax-free money to heirs.

Choose Traditional IRA if:

You need the tax deduction now to reduce your current-year tax bill.
You are in a high tax bracket now and expect a lower bracket in retirement.
You are not covered by an employer retirement plan (making the full deduction available).
You want to reduce your adjusted gross income for other tax benefits.

Consider Both if:

You want tax diversification — both taxable and tax-free income in retirement.
You are unsure about future tax rates.
You max out your 401k and want additional retirement savings options.

Use our Roth IRA Calculator to project how your Roth IRA contributions will grow tax-free over time.