Roth IRA Income Limits for 2026: How MAGI Works When You Earn Too Much

By Kevin Luu, Co-Founder and Chief Learning Officer. Reviewed on 2026-09-30.

For 2026, the maximum income for a direct Roth IRA contribution is a modified adjusted gross income (MAGI) of $252,000 for married couples filing jointly and $168,000 for single filers. The allowed amount starts shrinking at $242,000 (joint) and $153,000 (single), and drops to zero at the top of each range (IRS Notice 2025-67). A two-earner household with $750,000 or more of W-2 income is far above that line, so the real question is not “how much can we put in” but “which route into a Roth is open to us”.

This guide shows how Roth MAGI is actually calculated, why pre-tax 401(k) deferrals rarely bring a high-income family under the limit, what to do if you already contributed too much, and how the backdoor and mega backdoor Roth fit a California or Washington family with young children.

Roth IRA income limits for 2025 and 2026

The IRS adjusts the phase-out ranges each year. Both years are shown because many families are still cleaning up 2025 contributions while planning 2026.

The annual IRA contribution limit (traditional and Roth combined) is $7,000 for 2025 and $7,500 for 2026, plus a catch-up of $1,000 for 2025 and $1,100 for 2026 at age 50 or older. Sources: IRS Publication 590-A and Notice 2025-67. Note the separate-return row: a married couple cannot file separately to get under the limit. If you lived together at any point in the year, the range is $0 to $10,000.

How MAGI for Roth IRA purposes is calculated

Roth MAGI is not the same number as the MAGI used for other tests, such as the 3.8% Net Investment Income Tax. The IRS gives its own worksheet (Worksheet 2-1 in Publication 590-A). In plain terms:

1. Start with adjusted gross income (AGI) from Form 1040, line 11a.
2. Subtract any income from converting a traditional IRA to a Roth IRA, and any income from rolling a pre-tax workplace plan into a Roth IRA.
3. Add back any traditional IRA deduction, student loan interest deduction, foreign earned income or housing exclusion, foreign housing deduction, excludable savings bond interest (Form 8815) and excluded employer adoption benefits (Form 8839).

Two details matter for a high-income family. First, step 2 means a Roth conversion does not count against you for Roth contribution purposes. Second, most of the add-backs rarely apply at this income level (the student loan interest deduction phases out well below $750,000, and so does the traditional IRA deduction when either spouse is covered by a workplace plan), so for most W-2 households Roth MAGI is close to AGI.

What already lowers AGI before you start

AGI is calculated after pre-tax payroll deductions: traditional 401(k) deferrals ($24,500 per person for 2026), HSA contributions through payroll, and a dependent care FSA (up to $7,500 per household for 2026). RSU income is the opposite: shares that vest are wages, so a large vest year raises AGI dollar for dollar. For a family at $500,000, these deductions do not close the gap to $252,000. At $900,000 they are not close.

Worked example: a $900,000 household in California

Assumptions (illustrative): Priya is a scientist at a South San Francisco biotech earning $420,000 including RSUs. Daniel is a software engineer earning $480,000 including RSUs. They file jointly, have two children aged 4 and 7, and both defer the full $24,500 pre-tax into their 401(k)s. They have $9,000 of taxable interest and dividends.

Their Roth MAGI is $608,000 above the cutoff. No realistic mix of pre-tax deductions changes that. If each of them had contributed $7,500 directly to a Roth IRA anyway, they would have a $15,000 excess contribution, which costs a 6% excise tax ($900) for every year it stays in the account uncorrected.

If you already contributed too much

This happens often in a year with a promotion, a large RSU refresh or a new job with a sign-on bonus. Publication 590-A gives two clean fixes:

• Withdraw the excess plus its earnings by the due date of your return, including extensions. For a 2025 contribution, that is April 15, 2026, or October 15, 2026 with a timely extension. If you filed your 2025 return on time, Publication 590-A also allows the withdrawal up to October 15, 2026 with an amended return. The earnings are taxable for the year the contribution was made. If you miss the deadline, the 6% tax applies each year (Form 5329) until the excess is removed.
• Recharacterize the contribution as a traditional IRA contribution by the same deadline. The custodian moves the contribution and its earnings to a traditional IRA. You report the recharacterization on your return for the year of the contribution, record the nondeductible amount on Form 8606, and can then convert it to a Roth, which is a backdoor Roth done after the fact.

Recharacterization works for contributions only. Since 2018, a Roth conversion cannot be undone.

The backdoor Roth IRA: the route that is open at any income

There is no income limit on contributing to a traditional IRA (at this income you usually cannot deduct it if either spouse has a workplace plan), and there is no income limit on converting a traditional IRA to a Roth. The backdoor Roth combines the two: each spouse makes a nondeductible $7,500 traditional IRA contribution for 2026, files Form 8606 to record the basis, and converts it to a Roth. If the account holds only that after-tax money, the conversion is close to tax-free. Our backdoor Roth step-by-step guide covers the mechanics.

The pro-rata trap with an old rollover IRA

The IRS looks at all of your traditional, SEP and SIMPLE IRAs together, valued at December 31 of the conversion year (Form 8606 instructions). Suppose Daniel has a $142,500 pre-tax rollover IRA from a previous employer. He adds $7,500 of nondeductible money and converts $7,500. His total IRA balance is $150,000, of which $7,500 (5%) is after-tax. Only 5% of the conversion ($375) is tax-free, and $7,125 is taxable.

At their income that $7,125 sits in the 37% federal bracket for 2026 (which starts at $768,700 of joint taxable income), about $2,636 of federal tax, plus California tax at their marginal rate (10.3% on the 2025 schedule, about $734). The common fix is to roll the pre-tax IRA into a current employer 401(k) before December 31, if the plan accepts incoming rollovers. Spouses are tested separately, so Priya’s clean backdoor is not affected by Daniel’s old IRA. See how the pro-rata rule works for more detail.

California versus Washington

California taxes the taxable part of any conversion as ordinary income; there is no preferential rate. A clean backdoor Roth has little or no taxable amount, so the state cost is usually small. The pro-rata case above is where California adds a real cost.

Washington does not have an individual income tax in 2026 (Washington DOR), so only federal tax applies to a taxable conversion. One caution for Seattle-area families: Washington has enacted a 9.9% income tax on AGI over $1,000,000 starting January 1, 2028. If a large conversion of pre-tax money is on your list, the years before 2028 deserve a second look once the state publishes its rules.

The bigger lever: the mega backdoor Roth

The IRA route moves $15,000 a year for a couple. Many large employers allow after-tax 401(k) contributions with in-plan Roth conversion, which can move far more. For 2026 the total that can go into a 401(k) from all sources is $72,000 per person, not counting catch-ups. If Daniel defers $24,500 and his employer contributes $12,000 (illustrative), his after-tax room is $35,500 ($72,000 minus $24,500 minus $12,000). Whether that money belongs in a Roth or a taxable account depends on when the family expects to use it; see mega backdoor Roth versus a brokerage account. Our retirement and employee benefits work starts by reading each spouse’s plan document, because not every plan allows it.

The decision a $750,000+ family actually has to make

1. Confirm you are above the limit (you almost certainly are) and stop any automatic direct Roth IRA contributions.
2. Check each spouse for pre-tax IRA balances by December 31. Roll them into a 401(k) or accept the pro-rata tax knowingly.
3. Do a backdoor Roth for each spouse and file Form 8606 every year, even when the tax is zero.
4. Ask each employer whether the 401(k) allows after-tax contributions with in-plan conversion.
5. Fix any past excess contribution before the return deadline for that year.

What to write down for your children

Roth money is usually the last money a family spends and often the first money children inherit. Keep a one-page record of each spouse’s Form 8606 basis, which accounts are Roth, and why you chose Roth over taxable savings. When a child earns their first paycheck, the same logic applies to a custodial Roth IRA. Conversations fade. Documentation compounds.

Frequently asked questions

Do 401(k) contributions lower MAGI for Roth IRA purposes?

Yes. Traditional pre-tax 401(k) deferrals reduce your W-2 wages, which reduces AGI and Roth MAGI. Roth 401(k) deferrals do not. For 2026, two spouses deferring $24,500 each lower MAGI by $49,000. That helps a household near $290,000, but it will not bring a $750,000 household under the $252,000 joint limit.

Does a Roth conversion count toward the Roth IRA income limit?

No. Worksheet 2-1 in Publication 590-A subtracts conversion income from AGI when figuring Roth MAGI. A conversion still raises AGI for other purposes, such as the Net Investment Income Tax threshold and California taxable income, so a large conversion of pre-tax money can still change your overall tax bill.

Can we do a backdoor Roth if only one spouse works?

Yes. A spouse with little or no pay can contribute to an IRA based on the working spouse’s taxable compensation when you file jointly, so both spouses can do a backdoor Roth. Each spouse’s pro-rata test is separate, based on IRAs in that spouse’s own name.

This is general education, and the right move depends on your family’s full picture. If you would like a second set of eyes on your 401(k) plan documents, old IRAs and Form 8606 history, the Tax & Wealth Assessment from Bright Advisers walks through them with you. Our tax management page explains how that work fits into the year.

Written by

Kevin Luu

Co-Founder and Chief Learning Officer, Bright Advisers

Kevin has advised high-income W-2 tech and biotech families since 2015, and leads the education-first Age Five Family Office from Brea, California.

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