How the Backdoor Roth IRA Works in 2026

Episode 80 of The Tax Strategy Podcast breaks down the Backdoor Roth IRA maneuver for high earners in 2026. Lucas explains the mechanics: contribute to a traditional IRA, then convert to a Roth IRA. Luna raises the pro-rata rule trap when you have existing pre-tax IRA balances. They walk through a concrete example of a single filer earning $180,000, show how to avoid the income limit on direct Roth contributions, and discuss the tax impact with today's rates. The hosts also cover the new IRS reporting requirements for 2026 and the potential legislative risk if Congress ever closes this loophole. Perfect for anyone saving for retirement who earns too much for a standard Roth IRA. #BackdoorRothIRA #RothIRA #TraditionalIRA #ProRataRule #HighEarners #RetirementPlanning #TaxStrategy #IRAConversion #IRS #TaxLoophole #2026Tax #Finance #TaxPlanning #FexingoBusiness #BusinessPodcast #Podcast #Investing #RetirementSavings Keep every episode free: buymeacoffee.com/fexingo