Direct Roth contributions phase out at $168k if you’re single. $252k if you’re married filing jointly, for 2026.
Most people hit that number and assume the Roth conversation is over.
It’s not. There are two more tools built into the tax code for exactly this situation. Most high earners never use either one.
The Short Version
Direct Roth contributions phase out at $153K-$168K single, $242K-$252K married filing jointly for 2026
The backdoor Roth gets around the income limit with two IRS forms and zero gray area, if you do it right
The mega backdoor Roth can move tens of thousands more per year into Roth space, but only if your 401(k) plan allows it
Most people never check if their plan allows it
The mistake isn’t skipping the Roth. It’s not knowing the door was still open
1. The Direct Roth IRA
The baseline.
Contribute after-tax dollars. Grow tax-free. Withdraw tax-free in retirement.
$7,500 limit for 2026. $8,600 if you’re 50 or older.
Pros: The simplest retirement account there is. No conversion step. No pro-rata math. No extra forms.
Cons: Once your MAGI crosses the phase-out range, your allowed contribution drops to zero.
Best for: Anyone under the income limit who isn’t already maxing this out. If that’s you, stop reading and go fund it.
2. The Backdoor Roth
Contribute to a traditional IRA with after-tax dollars. No deduction, since you’re over the limit.
Then convert that IRA to a Roth.
The contribution has no income limit. The conversion has no income limit. That’s the entire move. It’s been standard practice since 2010.
Pros: Gets $7,500 (or $8,600) into Roth space every year, regardless of income. Well-established. Nothing gray about it if you run it correctly.
Cons: The pro-rata rule.
If you’ve got other pre-tax IRA money sitting around, a rollover from an old 401(k) is the usual culprit, the IRS treats your conversion as a proportional blend of pre-tax and after-tax dollars. You’ll owe tax on the pre-tax slice.
This is the single most common way people mess this up.
Clear out old rollover balances first, usually by rolling them into a current 401(k) that accepts incoming rollovers.
Best for: Anyone over the Roth income limit with no other traditional IRA balances, or who’s willing to clear them out first.
3. The Mega Backdoor Roth
The largest version of this move.
If your 401(k) plan allows after-tax contributions, separate from your regular pre-tax or Roth deferrals, and allows in-plan Roth conversions or in-service withdrawals, you can contribute after-tax dollars up to the total plan limit.
That’s $72,000 for 2026. Employee deferrals, employer match, and after-tax contributions combined.
For someone deferring the full $24,500 with a modest employer match, that can open up $30,000 to $40,000 a year in additional Roth room.
Pros: By far the largest amount you can move into Roth space in a single year, short of converting existing pre-tax balances, which is a different move entirely.
Cons: Most 401(k) plans don’t offer this.
You have to call your plan administrator and ask. Not assume.
And if the plan doesn’t support automatic in-plan conversion, the after-tax money sits there accumulating taxable growth until you manually convert it. That eats into the benefit.
Best for: High earners already maxing out their 401(k) and backdoor Roth who want more tax-free growth, and whose plan actually supports it.
Which is the real problem. Most people in this position never find out if theirs does.
The Quiet Mistake
Most people above the income limit have never once called their 401(k) provider and asked whether after-tax contributions and in-plan conversions are available.
Nobody’s benefits portal has a banner for it. HR may not know the answer without checking with the plan’s third-party administrator.
This is the kind of five-figure gap that just sits there year after year. Not because anyone decided against it. Because nobody looked.
Playing the Long Game
The backdoor Roth is a two-step process you can finish in an afternoon.
The mega backdoor is one phone call to find out if it’s even on the table.
Neither requires a new strategy. Just someone actually checking.
Call your plan administrator this week. Ask two questions: does the plan allow after-tax contributions, and does it allow in-plan Roth conversions or in-service withdrawals.
If the answer to both is yes, there’s probably real money sitting on the table.
Interested in Learning More?
Let’s start with a short, 20-minute conversation to see if there’s an opportunity to improve clarity, structure, or long-term outcomes.
Check out our website.
Upholdings Private Wealth is a registered investment adviser in applicable jurisdictions. Registration does not imply any specific level of skill or training.
This newsletter is provided for informational and educational purposes only and does not constitute investment, tax, legal, or accounting advice. It is not an offer or solicitation to buy or sell any securities or investment strategies.
Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal. There is no guarantee that any strategies discussed will achieve desired outcomes.
Information is provided “as is” without warranty as to accuracy or completeness, and opinions expressed are subject to change without notice.