Execute a backdoor Roth IRA without a tax surprise

  1. Confirm your MAGI exceeds the Roth IRA direct contribution limit
    15 min

    What you produce here: A clear yes-or-no answer — your modified adjusted gross income (MAGI) for Roth IRA purposes is above the IRS phase-out ceiling for your filing status. The nuance that trips people up: you need modified AGI, not the AGI on line 11 of Form 1040.

    Compute your MAGI for the Roth IRA test:

    1. Open your most recent federal tax return; use the 2025 return as a proxy for 2026 if your income has not changed dramatically.
    2. Find adjusted gross income on Form 1040, line 11.
    3. Add back every dollar you deducted or excluded in these categories:
      • Traditional IRA deduction (Schedule 1, line 20)
      • Student loan interest deduction (Schedule 1, line 21)
      • Foreign earned income or housing exclusion (Form 2555)
      • Domestic production activities deduction
      • Any other deduction that appears in the MAGI add-back list in IRS Publication 590-A Worksheet 2-1
    4. If your income changed significantly this year, also compute the same figure from your year-to-date pay stubs.

    Compare against the phase-out range:

    1. Visit IRS.gov and search “Roth IRA income limits.”
    2. For 2026, the phase-out ranges are published in IRS Publication 590-A or in a news release typically issued in November 2025.
    3. Match the range to your filing status:
      • Single or Head of Household: one range
      • Married filing jointly or Qualifying surviving spouse: a higher range
      • Married filing separately: a much lower range
    4. If your MAGI exceeds the top of the range, you are ineligible for a direct Roth contribution — the backdoor method is the way in.
    5. If your MAGI falls inside the phase-out range, you can still make a reduced direct contribution — the backdoor is unnecessary this year.