How did the IRS adjust MAGI thresholds for Roth IRA conversions and backdoor Roths in 2026?
Executive summary
The IRS raised the Roth IRA contribution limit for 2026 to $7,500 (with a $1,100 catch‑up for those 50+) and moved the MAGI phaseout bands up: single and head‑of‑household filers now phase out at $153,000–$168,000 (up from $150,000–$165,000) and married filing jointly phase out at $242,000–$252,000 (up from $236,000–$246,000) [1] [2] [3]. That widening of phaseout bands increases the income range in which taxpayers can still make partial direct Roth contributions, and preserves the viability of backdoor Roth conversions for those above the top of the ranges [3] [4].
1. What changed: higher contribution limits and shifted MAGI bands
For 2026 the IRS increased the nominal Roth/IRA contribution limit to $7,500 (and $8,600 for savers age 50+ including the $1,100 catch‑up) — the base contribution rose from $7,000 in 2025 — and simultaneously indexed the MAGI phaseout ranges upward so more households can make at least a partial direct Roth contribution [1] [2] [5].
2. Exact MAGI thresholds that matter
The most-cited thresholds for direct Roth eligibility in 2026 are: single and head‑of‑household full‑contribution eligibility below $153,000 with phaseout to $168,000; married filing jointly full eligibility below $242,000 with phaseout to $252,000. Married filing separately remains subject to the very low $0–$10,000 phaseout in most reporting [2] [3] [6].
3. What the phaseout increase means in practice
Raising the phaseout bands broadens the income window where taxpayers can make partial direct Roth contributions rather than being immediately barred; for people whose MAGI remains above the top of the new ranges, the direct route is still closed and the “backdoor” — nondeductible traditional IRA contribution followed by conversion — remains the commonly cited workaround [3] [4] [1].
4. Backdoor Roths: still available, still conditional
Sources explicitly note that if your MAGI exceeds the top of the phaseout range, you cannot contribute directly to a Roth in 2026 — but “some higher‑income households may still use backdoor Roth strategies where appropriate,” meaning the backdoor conversion remains an option commonly discussed in the coverage [3] [4]. Available sources do not mention any IRS rule in these summaries that eliminates the backdoor Roth mechanism for 2026 contributors.
5. Interaction with traditional IRA deductibility and workplace plans
The same inflation adjustments also changed the deductibility phaseouts for traditional IRA contributions when a taxpayer (or spouse) is covered by a workplace retirement plan: those ranges moved up (for example, single filers’ deductibility phaseout rose to about $81,000–$91,000 in 2026), which can affect whether a contributor makes deductible or nondeductible traditional IRA contributions before a conversion [4] [7].
6. Why the details matter for planning
Individuals near the prior thresholds gained room to make full or partial Roth contributions in 2026 because of the indexed increases. For those still above the new tops of the ranges, advisers and outlets continue to point to backdoor Roths or nondeductible traditional contributions followed by conversions as the standard avenues; withholding or timing decisions (for example, contributions made early vs. late in the year) and the presence of existing pre‑tax IRA balances will change tax outcomes in a backdoor conversion [2] [3] [1]. Available sources do not provide a step‑by‑step tax planning playbook for every situation.
7. Competing coverage and consistency of figures
Coverage from major brokerages and financial publishers (Fidelity, NerdWallet, Kiplinger, Voya, White Coat Investor and others) is consistent about the $7,500 base limit and the 2026 MAGI phaseout bands of $153k–$168k (singles/HOH) and $242k–$252k (married filing jointly) [8] [2] [6] [9] [4]. Some summaries emphasize planning angles (deductibility, Saver’s Credit changes, employer plan interactions) more than others; where figures differ in tone, the numeric thresholds reported in these sources align [1] [3].
8. Limitations and what the reporting does not say
These sources summarize IRS COLA adjustments and industry reaction but do not publish the full IRS notice text within these excerpts; they do not report any new statutory ban on backdoor Roth conversions for 2026 in the materials provided [3] [4]. For case‑specific tax consequences — e.g., exactly how a conversion will be taxed given multiple IRA balances — the sources recommend consulting tax professionals [1] [7].
Bottom line: for 2026 the IRS raised both the Roth contribution amount and the MAGI phaseout bands, expanding eligibility for direct Roth contributions; taxpayers above the new top ends still cannot contribute directly but retain the backdoor Roth conversion strategy discussed across the reporting [1] [3] [4].