Roth IRA 2026 contribution limit — $7,000, and why I'm doing Backdoor

The 2026 Roth IRA contribution limit is $7,000 ($8,000 if 50+). My AGI hit $150k this year, which means I'm in the phase-out range for direct Roth contributions. I had to switch to the Backdoor Roth strategy.

Here's the process: contribute $7,000 to a traditional IRA (non-deductible), let it settle, then convert to Roth IRA. The key is having zero pre-tax IRA balance — if you have a rollover IRA from a previous job, the pro-rata rule will tax the conversion. I moved my old 401k into my current employer's plan to keep the traditional IRA balance at zero.

After conversion, the $7,000 is in the Roth and grows tax-free. Took me 15 minutes on Fidelity. If you're near the income limit, don't wait — do the Backdoor before year-end.