Convert IRA to Roth IRA

[user17715334666]

If I am limited by MAGI to open a Roth IRA, can I open an IRA and then converted to Roth?

[AmyC]

Yes, that is called a backdoor ROTH. You can contribute for 2025 until April 15, 2026 and you can contribute for the 2026 tax year. You can made a nondeductible contribution to a traditional IRA. Once the funds settle, tell the broker you want to do a ROTH conversion.

When you file your taxes, the nondeductible amount is reported on Form 8606. This lets the IRS know you have paid taxes on the money so you are not taxed again on the conversion.