Backdoor Roth vs Traditional IRA
Compare a Backdoor Roth conversion against staying Traditional when direct Roth contributions are phased out.
Roth vs Traditional comparisons are done in your browser; no account or contribution details are transmitted.Try: Current age=30, Retirement age=65, Annual contribution=7000, Current tax bracket=37, Expected retirement bracket=28, Expected annual return=7 → $696,714, $609,625, $87,089
How to use
When your income blocks direct Roth contributions, the Backdoor Roth lets you fund a Roth indirectly. This tool shows the after-tax future value; the real decision also depends on pro-rata taxation of any existing pre-tax IRA balances.
FAQ
Does a Backdoor Roth avoid the income limit?
Yes. The contribution itself is non-deductible and the conversion to Roth is allowed at any income, subject to the pro-rata rule.
What is the pro-rata rule?
If you have pre-tax money in any IRA, part of each conversion is taxable. Clean execution usually means no other pre-tax IRA balances.