How To Use a Backdoor Roth IRA To Avoid Income Limits

In this episode, Lucas and Luna break down the Backdoor Roth IRA strategy for high-income earners in 2026. They explain the IRS income limits for direct Roth IRA contributions — $161,000 for single filers and $240,000 for married couples filing jointly — and how the backdoor method lets you legally convert a nondeductible traditional IRA to a Roth IRA regardless of income. They walk through the step-by-step process, highlight the pro-rata rule trap if you have existing pretax IRA assets, and compare pros and cons versus a Roth 401(k). If you earn too much to contribute to a Roth IRA directly, this episode gives you the playbook to get tax-free growth anyway. #BackdoorRothIRA #RothIRA #IRA #RetirementPlanning #HighIncome #TaxStrategy #ProRataRule #RothConversion #Roth401k #IRS #RetirementSavings #TaxFreeGrowth #Finance #PersonalFinance #Fexingo #FexingoBusiness #BusinessPodcast #Podcast Keep every episode free: buymeacoffee.com/fexingo