What Is a Backdoor Roth IRA?
A backdoor Roth IRA is a strategy used by people whose income is too high to contribute directly to a Roth IRA: they contribute to a traditional IRA without deducting it, then convert that money to a Roth IRA. It is a combination of two permitted steps rather than a special account type.
The Pro-Rata Rule
If a person has other pre-tax money in traditional IRAs, the conversion is taxed proportionally across all of it, which can make part of the conversion taxable.
Record Keeping
Non-deductible contributions are reported on IRS Form 8606.
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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.