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 convert that money from the traditional IRA to a Roth IRA
For 2026, the total amount you can contribute to traditional and Roth IRAs combined is:
$7,500 if you’re under age 50
$8,600 if you’re age 50 or older
Your contribution also can’t exceed your eligible taxable compensation for the year. These limits apply to contributions, not Roth conversions.
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 the taxable portion of the conversion—not the money you already paid taxes on.
Important: If you have other Traditional, SEP, or SIMPLE IRA balances, part of your conversion may be taxable under IRS rules, even if you made an after-tax contribution.
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 help prevent double taxation.
Not sure what to enter?
If a question doesn’t apply to you, $0 may be the correct answer. However, if you made nondeductible IRA contributions or have an existing IRA basis, it’s important to enter the correct amounts.
april will guide you through the remaining questions to help report your backdoor Roth IRA correctly.
This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.
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