A high-income strategy: Learn how Backdoor Roth IRA works in 2025 and optimize your retirement plan. Take action now — check out the Backdoor Roth IRA guide below 👇
What is a Backdoor Roth IRA?
The Backdoor Roth IRA is a legal IRS-approved strategy that allows high-income individuals to bypass income limits and enjoy tax-free Roth IRA growth by making a non-deductible Traditional IRA contribution and converting it.
2025 IRA Contribution & Income Limits
Traditional IRA (2025): $7,000 limit ($8,000 if age 50+)
Roth IRA Income Limits:
Married filing jointly: Phase-out from $230,000 – $240,000
Single filer: Phase-out from $145,000 – $160,000
Why High-Income Earners Need the Backdoor Roth IRA
If you're over the Roth IRA income limit and cannot deduct Traditional IRA contributions due to your workplace plan, Backdoor Roth allows tax-free Roth IRA access through conversion.
How to Do a Backdoor Roth IRA in 2025
1. Contribute to Traditional IRA (non-deductible)
2. Convert to Roth IRA
3. Report with IRS Form 8606
Important Note: The Pro-Rata Rule
If you have existing pre-tax IRA balances, your conversion will be taxed proportionally. Zero balances make the process tax-free.
Mega Backdoor Roth IRA
This strategy uses after-tax 401(k) contributions and conversion to Roth — up to $69,000 in 2025. Ideal for high-income earners.
Summary
Backdoor Roth IRA is a high-impact, IRS-approved strategy for tax-free retirement growth. Take action now and secure your future.
