A backdoor Roth IRA is a tax strategy that lets you put money into a Roth IRA even if your income is too high to contribute directly.
Instead of contributing directly to a Roth IRA, you use an extra step—often called the “backdoor.”
How a backdoor Roth IRA works
Roth IRAs have income limits. If you earn over those limits, direct contributions aren’t allowed.
A backdoor Roth IRA uses two IRS-allowed steps:
Contribute after-tax money to a traditional IRA
Then “roll” that money from the traditional IRA to a Roth IRA
How it’s reported to the IRS
Form 8606 is used to report nondeductible traditional IRA contributions and Roth conversions. It tracks your after-tax basis so you’re only taxed on any taxable portion of the conversion—not the money you already paid taxes on.
How to enter a backdoor Roth IRA in april
You’ll be asked about your retirement income. Enter the information from Form 1099-R, which is sent by the financial institution that processed the IRA distribution.
Next, answer questions about whether the distribution was rolled over and converted to a Roth IRA.
If applicable, we’ll ask for additional details about after-tax IRA contributions (basis) to make sure you’re not taxed twice.
Not sure what to enter?
That’s okay. If a question doesn’t apply to you, entering $0 is often the right choice. april will guide you through the rest and help ensure your backdoor Roth IRA is reported correctly.