Couples above the $252,000 IRS income cap can bypass Roth IRA limits using after-tax contributions and conversions.
High earners exceeding IRS income limits for Roth IRAs are using a backdoor strategy to contribute up to $8,600 tax-free in 2026. The method involves depositing after-tax dollars into a traditional IRA and converting it to a Roth IRA, avoiding direct contribution restrictions.
The IRS phases out Roth IRA contributions for joint filers earning between $242,000 and $252,000 in 2026. Couples executing the strategy can funnel $17,200 annually into tax-free accounts, potentially growing to $250,000 over 15 years. Pre-tax IRA balances may trigger taxable conversions unless rolled into a 401(k) first.
This workaround remains popular among high-income professionals, including a 58-year-old engineer earning $310,000, seeking tax-free growth and withdrawals.