What are the 2026 Roth IRA income limits and Backdoor Roth phase-out thresholds?

Under IRS Notice 2025-67 for Tax Year 2026, direct Roth IRA contributions ($7,500 base limit, or $8,600 if age 50+) phase out between $153,000 and $168,000 MAGI for Single and Head of Household filers, and between $242,000 and $252,000 MAGI for Married Filing Jointly. Earners above those limits can execute a 2-step Backdoor Roth IRA conversion under IRC § 408A.

How does the 2026 Mega Backdoor Roth $72,000 limit work under IRC § 415(c) and IRS Notice 2014-54?

For 2026, the total 401(k) annual additions limit under IRC § 415(c) is $72,000 (plus $8,000 catch-up for age 50+ or $11,250 super catch-up for ages 60–63 under IRC § 414(v)). After subtracting your $24,500 employee deferral and any employer match, you can contribute the remaining room as voluntary after-tax 401(k) dollars and execute an in-service split rollover to a Roth IRA with $0 conversion tax under IRS Notice 2014-54 — completely immune from the IRA Pro-Rata Rule (IRC § 72(e)(8)).

How do the two Roth IRA 5-year rules work for principal versus earnings?

There are two separate Roth 5-year rules: (1) Under IRC § 408A(d)(2)(B), investment earnings are 100% tax-free once you are age 59½+ and at least 5 tax years have passed since your very first contribution or conversion to any Roth IRA. (2) Under IRC § 408A(d)(3)(F), each taxable Roth conversion has its own 5-tax-year clock before converted principal can be withdrawn penalty-free under age 59½; once you reach age 59½, the conversion 5-year rule is moot and converted principal is immediately penalty-free.

Roth Conversion & Tax-Cliff Analyzer

Visual Explainer

How a Roth Conversion Actually Works

Pre-Tax (taxable later) Roth (tax-free forever) Tax paid to IRS Outside Taxable Cash

1Your Situation

Tax Year:

Plain-English inputs — click any i to see what a term means.

Pre-Tax → Roth: Lock in today's tax rate

Filing Status

Your Age

Spouse Age

Household income before this conversion (MAGI)

Wages, salary, business income, pensions, interest & dividends

Amount to convert this year

Pre-Tax IRA Balances (all custodians)

Traditional + Rollover + SEP + SIMPLE IRAs on 12/31

Advanced: Existing after-tax IRA basis

After-tax basis already in your IRAs (Form 8606)

Non-deductible basis already in your IRAs (Form 8606 line 14)

How Will You Pay the Tax?

Tax rate when you withdraw (federal %)

State income tax rate (%)

California default 9.3%. Enter 0 for no-tax states.

I have long-term gains / qualified dividends this year

I opened & funded a Roth IRA in 2022 or earlier (5-year account clock met)

Growth & Horizon Assumptions

Years to Grow

Growth Rate %

Growth on the cash you'd use for the tax (%)

What this conversion really costs

Real cost per $1 converted

31.3¢per $1 converted

Statutory bracket: 22%

● Your amount: $50,000 Bracket ceiling: $63,600

After-tax wealth in 20 years

Strategy	Year 20 after-tax	vs. doing nothing

When Can I Touch This Money Tax- & Penalty-Free? (The Two 5-Year Rules)

1. Converted / Contributed Principal

Immediately

2. Future Growth & Earnings

Immediately

Your Step-by-Step Playbook

Step → Open Roth

Open a CleverAlpha Roth IRA

Digital onboarding at Charles Schwab custody, 25 bps/yr, no minimum.

Get started →

Step → Open Traditional

Open a CleverAlpha Traditional IRA

Required for a Backdoor Roth or staged conversion strategy.

Get started →

Tax year 2026 parameters · verified 2026-10-29

Roth Conversion & Tax-Cliff Analyzer

How a Roth Conversion Actually Works

What this conversion really costs

After-tax wealth in 20 years

Eligibility, Deductibility & Pro-Rata Check

When Can I Touch This Money Tax- & Penalty-Free? (The Two 5-Year Rules)

Your Step-by-Step Playbook

Open a CleverAlpha Roth IRA

Open a CleverAlpha Traditional IRA