Meet the first fully automated Backdoor Roth IRA designed
by CPAs & CFP® Professionals
WealthRabbit handles everything: opening the accounts, executing the conversion,
and investing your money. Set it up once and we handle the rest.
Fully Automated
The Backdoor Roth has a lot of steps. We automated them all. No extra logins. No transfers. No timing it yourself.
Secure & Compliant
Your retirement deserves serious security. WealthRabbit runs on bank-grade infrastructure with every step logged and auditable.
Auto-Invested
Once your funds convert, they’re invested automatically. No idle cash. No manual trades. Just your portfolio doing its job.
One Seamless Flow
Both IRAs, One setup. No switching platforms or juggling accounts. Everything happens in WealthRabbit - automatically.
The Backdoor Roth might be for you if…
The Backdoor Roth isn’t for everyone. But if any of these sound like you, you’re in the right place.
You earn too much for a Roth IRA
Doctors, engineers, founders, and executives often use the Backdoor Roth to keep getting Roth tax benefits.
You're already maxing your 401(k)
You’ve hit the limit and want another tax-advantaged place to invest.
You want tax-free withdrawals in retirement
Pay taxes now. Withdraw tax-free later.
You’ve heard of the Backdoor Roth - but never done it
You Googled it. Got overwhelmed. Closed the tab. We get it.
You hate paperwork
No paperwork. No timing stress. No “did I do this right?”
You’re building wealth for the long run
And you want every legal tax advantage working for you.
If two or more of these sound like you, the Backdoor Roth strategy is likely worth exploring.
What is a Backdoor Roth IRA?
Backdoor Roth lets you contribute to a Roth IRA even if your income exceeds the IRS limit for direct contributions.
This approach involves making a non-deductible contribution to a Traditional IRA, then converting those funds to a Roth IRA. Same result, different door.
- No income limits on conversion
- Tax-free growth & withdrawals
- No required minimum distributions
- 100% legal
How it works
Contribute to a Traditional IRA
Make a non-deductible contribution with after-tax dollars. Up to $7,500 for 2026 ($8,600 if age 50+).
Convert to Roth IRA
Move the funds from Traditional to Roth IRA. WealthRabbit handles this automatically.
Funds Get Invested
Your converted Roth funds go straight into your chosen portfolio and begin growing tax-free.
Withdraw Tax-Free in Retirement
Qualified withdrawals are completely tax-free. No required minimum distributions. Your future self will thank you.
Why Many High Earners Can’t Contribute to a Roth IRA
If your income exceeds IRS limits, you can’t contribute directly to a Roth IRA - but the Backdoor strategy can still get you there.
Single Filer/Head of Household
Married Filing Jointly
Married Filing Separately
What Stops High Earners
From Acting
The Backdoor Roth strategy is powerful - but the manual execution keeps many people from ever doing it.
Two Accounts
to Manage
You need both a Traditional IRA and a Roth IRA. Opening and coordinating them - sometimes across different platforms - can be tedious and easy to get wrong.
Conversion Timing
Can Be Tricky
Contribute too late, invest before converting, or miss a step, and the tax reporting can get complicated.
The Pro-Rata Rule
Can Be Confusing
If you have other pre-tax IRA balances, part of your conversion may be taxable. It’s a rule many people don’t discover until tax season.
Filing
Form 8606
Each Backdoor Roth requires filing Form 8606 with your personal tax return. Miss it, and you could end up paying tax twice on the same money.
Set Up Your Backdoor Roth in 4 Simple Steps
We simplify the entire process. Here’s how your Backdoor Roth gets set up.
Open Both IRAs in
One Flow
Open your Traditional IRA and Roth IRA together with a single application. No jumping between platforms.
Set Your
Contribution
Choose how much you want to contribute. We automatically keep it within IRS limits.
Authorize
WealthRabbit
One authorization lets us handle the Roth conversion for you - no timing or manual transfers required.
Funds Convert &
Get Invested
Your contribution converts to Roth automatically and is invested in your selected portfolio. Done.
Your Converted Funds,
Expertly Invested
Once your Backdoor Roth conversion is complete, your money moves straight into a professionally managed portfolio you choose.
Built for people who take their finances seriously
The Backdoor Roth isn’t a side feature - it’s what WealthRabbit was built for.
Purpose-built for this
WealthRabbit wasn’t retrofitted to support the Backdoor Roth. It was designed from day one to make this strategy simple, automated, and reliable.
Your data stays protected
Bank-level encryption and security practices protect your accounts and personal information at every step.
Always current with IRS rules
Contribution limits and tax rules change. We stay on top of them so you don’t have to. Your strategy adapts automatically.
Frequently asked questions
The pro-rata rule is an IRS rule that determines how much of your Roth conversion is taxable when you have both pre-tax and after-tax money in your IRA accounts.
When you convert funds from a Traditional IRA to a Roth IRA, the IRS looks at all of your Traditional, SEP, and SIMPLE IRA balances combined, not just the account used for the conversion.
Your conversion is treated as a proportional mix of pre-tax and after-tax money.
Example
If you have:
- $90,000 in pre-tax IRA funds
- $10,000 in after-tax contributions
Your total IRA balance is $100,000.
If you convert $10,000 to a Roth IRA, the IRS considers:
- 90% taxable
- 10% non-taxable
Because 90% of your total IRA balance was pre-tax.
When you make a non-deductible contribution to a Traditional IRA, you must file IRS Form 8606 with your tax return. This form tracks your basis, which is the after-tax money you’ve contributed to your IRA.
Filing Form 8606 is important because it creates a record with the IRS that your contribution was already taxed. Without it, the IRS may treat the funds as pre-tax, which could result in paying taxes again when you convert or withdraw the money.
When calculating taxes on a Backdoor Roth conversion, the IRS applies the pro-rata rule based on your total IRA balance on December 31 of that tax year, not the balance on the day you perform the conversion.
This means the IRS looks at the combined value of all your Traditional, SEP, and SIMPLE IRAs at the end of the year to determine the ratio of pre-tax and after-tax funds.
Even if you convert funds earlier in the year, any additional IRA balances that exist on December 31 will still be included in the calculation.
The IRS does not require a specific waiting period between making a non-deductible contribution to a Traditional IRA and converting those funds to a Roth IRA.
Many individuals choose to convert shortly after making the contribution to minimize potential earnings in the account before the conversion. If the funds grow before the conversion takes place, those earnings may be taxable when converted.
A Backdoor Roth starts with a non-deductible contribution to a Traditional IRA, so the annual IRA contribution limits apply.
For 2026, the contribution limits are:
- $7,500 if you are under age 50
- $8,600 if you are age 50 or older (includes the catch-up contribution)
These limits apply to the combined total of all your IRA contributions for the year. If you contribute to both a Traditional IRA and a Roth IRA, the total cannot exceed the annual limit.
After making the non-deductible contribution to a Traditional IRA, those funds can then be converted to a Roth IRA as part of the Backdoor Roth strategy.
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