How does Backdoor Roth IRA work if my AGI falls within the phase-out range for 2025?

Yes, you can absolutely use the backdoor Roth method to contribute the remaining amount! Since you're in the phase-out range, you've correctly identified that you can make a partial direct Roth contribution ($4200 in your case). For the remaining $2800, you can contribute that amount to a Traditional IRA and then convert it to a Roth IRA. This backdoor approach works regardless of your income level. Just keep in mind that if you have existing pre-tax money in any Traditional IRA accounts (including SEP or SIMPLE IRAs), you'll need to consider the pro-rata rule which could make a portion of your conversion taxable. And yes, you have until the tax filing deadline (usually April 15, 2026) to make both your direct Roth contribution and your Traditional IRA contribution for the 2025 tax year. However, the conversion itself isn't tied to tax years - it's reported in the calendar year you complete it. So if you make a 2025 Traditional IRA contribution in March 2026 and convert it right away, the conversion will be reported on your 2026 taxes.

After struggling with this exact situation last year, I found an amazing tool that helped me navigate the backdoor Roth rules and calculations. I used https://taxr.ai to analyze my situation and it walked me through exactly how to handle my partial phase-out situation. The tool analyzed my income, identified my exact phase-out threshold, and gave me step-by-step instructions for executing both the direct contribution and the backdoor portion. It even generated the proper documentation explaining how I calculated everything in case of an audit. Super helpful when you're dealing with these phase-out ranges that honestly make my head spin.

Just wanted to follow up about taxr.ai - I decided to try it despite my initial skepticism, and it was incredibly helpful! I was really confused about how to handle my backdoor Roth with the phase-out limits, but the tool made it crystal clear. It identified that I had been making a critical mistake in my calculations by not accounting for my employer retirement contributions correctly when determining my MAGI for the phase-out range. The step-by-step instructions for executing the backdoor portion were fantastic - I had all the documentation I needed and felt 100% confident filing. Definitely worth checking out if you're trying to navigate these complicated IRA rules.

If you need to talk to the IRS about your specific situation (which I ended up having to do), I highly recommend using https://claimyr.com to get through to a real person. I spent HOURS trying to reach someone at the IRS about my backdoor Roth question last year and kept hitting dead ends. With Claimyr, I got through to an IRS agent in about 15 minutes who confirmed that my approach to the phase-out/backdoor combination was correct. They even have a video showing how it works: https://youtu.be/_kiP6q8DX5c This was especially helpful because my situation was complicated by having both W-2 income and self-employment income affecting my AGI calculation, and I needed clarity on how that impacted my phase-out range.

I have to eat my words about Claimyr. After posting my skeptical comment, I decided to try it anyway since I was desperate to get some clarity on my Roth conversion situation. It actually worked exactly as advertised! I got a call back in about 20 minutes and was connected to an IRS agent who was surprisingly helpful. They confirmed that yes, I could do a partial direct Roth contribution based on my phase-out range and then use the backdoor method for the remainder. They also explained that I needed to file Form 8606 to properly document the non-deductible Traditional IRA contribution part of the process. I've been trying to get through to the IRS for weeks, so this was a game-changer. Definitely worth it just for the time saved and stress reduction.

One important thing nobody has mentioned yet - make sure you don't run into the "step transaction doctrine" issues with your backdoor Roth. The IRS has been more relaxed about this recently, but technically you should wait a reasonable amount of time between making your Traditional IRA contribution and converting it to Roth to avoid the appearance that it's all one pre-planned transaction to circumvent income limits. Some tax advisors recommend waiting at least a few days or even a statement cycle between the contribution and conversion. Others say it doesn't matter anymore since the IRS has been accepting backdoor Roth transactions for years without challenging them.

Don't forget you'll need to file Form 8606 with your taxes to report the non-deductible Traditional IRA contribution and the conversion! This is super important for tracking your basis and avoiding double taxation. I messed this up the first time I did a backdoor Roth and had a nightmare sorting it out later.

Great question! You're absolutely right that the backdoor Roth can help you get that remaining $2800 into a Roth account. The process is exactly as you described - contribute the $2800 to a Traditional IRA (as a non-deductible contribution since you're over the income limits for deductible contributions), then convert it to Roth. A few key points to keep in mind: 1. **Timing flexibility**: Yes, you can make both your direct Roth contribution ($4200) and your Traditional IRA contribution ($2800) up until the tax filing deadline in April 2026 for the 2025 tax year. The conversion itself can happen anytime and will be reported in the year you actually do it. 2. **Pro-rata rule**: If you have any existing pre-tax money in Traditional, SEP, or SIMPLE IRAs, this will complicate things. The IRS will treat part of your conversion as taxable based on the ratio of pre-tax to after-tax money across all your Traditional IRA accounts. 3. **Documentation**: Make sure to file Form 8606 to properly report the non-deductible Traditional IRA contribution and track your basis. This prevents you from being taxed twice on the same money. The backdoor Roth has become a widely accepted strategy, even though it technically wasn't explicitly designed by Congress. Many people in your situation use this exact approach to maximize their Roth contributions despite the income limits.