The Backdoor Roth IRA Strategy for High Earners in 2026

Episode 19 of Retirement Planning with Fexingo breaks down the Backdoor Roth IRA — a strategy high earners use to bypass the Roth IRA income phaseout. Lucas and Luna walk through the mechanics, the IRS 'step transaction' risk, and the pro-rata rule that can trigger unexpected tax bills if you have existing traditional IRA balances. They use a concrete example: a married couple earning $250,000 in 2026, contributing $7,000 each via a non-deductible traditional IRA then converting to Roth. They also discuss the proposed legislation in Congress that could eliminate the Backdoor Roth loophole, and what to do if you're caught by the pro-rata rule. No fluff, just the numbers and rules you need to know. #BackdoorRothIRA #RothIRA #HighEarners #RetirementPlanning #IRAConversion #ProRataRule #TaxStrategy #StepTransaction #IRS #FiduciaryRule #SECUREAct #RothConversion #NonDeductibleIRA #WealthManagement #PersonalFinance #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo