Backdoor Roth
Backdoor Roth IRA on a $250K Salary
The income cap for direct Roth IRA contributions is $161K (single, 2026). The Backdoor route is a fully legal workaround.
The short answer
At $250K salary you cannot contribute directly to a Roth IRA. The Backdoor Roth: (1) contribute $7,000 to a non-deductible Traditional IRA, (2) convert it to Roth the next day, (3) pay no tax (because you already paid tax on the income), (4) repeat each year. WARNING: only works cleanly if you have NO existing pre-tax Traditional IRA balance — otherwise the pro-rata rule taxes part of the conversion.
Run the math yourself
These calculators give you the same numbers we used above — with your own inputs.
Bottom line
A backdoor Roth at $250K adds $7K/year to tax-free growth, compounding to ~$500K over 25 years. Worth 30 minutes of paperwork each January. If you have an old 401(k) rollover in your Traditional IRA, roll it back into your current 401(k) FIRST to avoid the pro-rata tax.
Disclaimer. This is educational, not personalized financial advice. Numbers depend on your specific tax bracket, state, and goals. Verify with the IRS, SSA, or a CPA before acting. See our Financial Disclaimer.
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