What is the pro-rata rule for backdoor Roth conversions?

The IRS treats all your traditional IRA balances as one pool when calculating the taxable portion of a conversion. If you have $100K in a pre-tax IRA and contribute $7,500 nondeductible, then convert $7,500 to Roth, only about $523 is tax-free (7,500/107,500). The rest is taxable at your marginal rate.

How do I avoid the pro-rata rule?

Roll your pre-tax IRA balance into your employer 401(k) before December 31st of the year you do the conversion. With zero pre-tax IRA balance at year-end, 100% of your $7,500 nondeductible contribution converts to Roth tax-free.

Can I do a backdoor Roth if I'm over 50?

Yes. The 2026 IRA limit for age 50+ is $8,600 ($7,500 base plus a $1,100 catch-up). You convert the full $8,600 via the backdoor strategy. The pro-rata calculation and tax cost remain the same, scaled to the higher contribution amount.

Not Financial Advice. CalcMoney provides calculators for educational and planning purposes only. Results are estimates and do not constitute financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Terms apply.

TAX STRATEGY

Backdoor Roth IRACalculator 2026

High earners above the $153,000 income limit use the backdoor strategy: contribute nondeductible to a traditional IRA, then convert. The pro-rata rule determines how much of that conversion is taxable.

How the pro-rata rule affects your conversion when you hold other pre-tax IRA funds
Your actual tax cost of the Roth conversion after the pro-rata calculation
20-year projection of Roth tax-free growth vs. taxable account after the conversion

IRS Notice 2014-54

Sources and last checked

IRS COLA table (401k/IRA/SIMPLE, Notice 2025-67) + Rev. Proc. 2025-19 (HSA/HDHP) + IRS.gov Roth IRA phase-out announcement, checked Sep 8, 2026

This calculator's figures come from these sources. We re-check them when new figures are published.

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Backdoor Roth IRACalculator 2026

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