This Backdoor Roth IRA tutorial takes you step by step through the contribution process including how to fill out IRS Form 8606. See the full post here: Mistakes can cost you time and money but this guide will show you how to fill out IRS Form 8606 for your Backdoor Roth IRA Conversion, even if the mistake was made by your financial advisor. Most high-income earners should be using a personal and spousal Backdoor Roth IRA by contributing to a non-deductible traditional IRA then converting it to a Roth IRA.
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Will you be guilty on Judgment Day? If you have done these things, God sees you as a lying, thieving, fornicating, blasphemer, adulterer at heart, and murderer, and the Bible warns that God will punish you in a terrible place called the lake of fire: Revelation 21:8: "But the fearful, and unbelieving, and the abominable, and murderers, and whoremongers, and sorcerers, and idolaters, and all liars, shall have their part in the lake which burneth with fire and brimstone: which is the second death."
Yet God, who is "…rich in mercy,…" sent His Son the Lord Jesus Christ to suffer and die on the cross for all guilty sinners. We broke God's law and the Lord Jesus Christ paid our fine. That means God can legally dismiss our case and He can commute our death sentence. John 3:16: "For God so loved the world that he gave his only begotten Son, that whosoever believeth in him should not perish but have everlasting life." Then the Lord Jesus Christ rose from the dead and defeated death.
Please, repent of your sins and trust in the Lord Jesus Christ as Savior, and God will give you eternal life as a free gift: Ephesians 2:8-9: "For by grace are ye saved through faith; and that not of yourselves: it is the gift of God: Not of works, lest any man should boast."
John 14:6: "Jesus saith unto him, I am the way, the truth, and the life: no man cometh unto the Father, but by me."
So if I made the contribution the following calendar year. Are the only lines filled 1,2,3,16,18? Is everything else blank or do I put zeroes?
Very helpful video! I was about to make a mistake and incorrectly fill in Line 2. Thank you for clarifying.
I did not get a chance to make to contribution in calendar year 2021 but made the 2021 contribution in 2022 before the tax filing due date. You mentioned that this is allowed but complicates things. Can you help me fill my 2021 Form 8606?
I contributed to Roth IRA first, re-characterized the contribution to Traditional IRA, and then converted the contribution back to Roth IRA. Shall I follow the same procedure in tax reporting?
You just saved me. Thank you so much for this detailed breakdown – especially the walk through of contributions made between Jan 1 and April.
Thank you so much for making this video. Lot of people not aware of backdoor roth IRA and even worse ppl who are filing taxes for us do not even know how it works. Your explanation and walking us through the process is very simple and helpful. I have already subscribed and liked the video. Watched this video over and over again for past 2 yrs. Please keep making these types of educational contents. Thanks!
Thank you so much. It is the best video for Roth conversion !! I wish I watched this video in 2020. I messed up my ROTH CONVERSION for 2020 and 2021 🙁 I contributed $500/month to Roth IRA in 2020 and found out my income was over the limit at the end of Dec 2020 (I get paid hourly , don't know exact my income every year ). In March 2021, the contribution in Roth IRA was recharacterized to traditional IRA then converted to Roth IRA . I received 1099R of traditional IRA stating (Gross Contribution: $7,808.13, Taxable amount: $7,808.13, Checked on "Taxable amount not determined", Distribution Code:2) and 1099R of ROTH IRA stating (Gross amount: $7,439.16, Taxable amount: $0.00, Distribution Code: R). I've been trying to fill out 8606 but I lost. Can you help me???
What if I contributed after Dec 31 for the previous tax year? Can you explain a little about this process?
I believe I answer no for L3 of f8606 which nullifies the rest of Part 1 for me, but then how and when do I report the conversion? Is it on next year's f8606? If so, I would have a double conversion (assuming the tax code doesn't change for this) of $12k on L8. Or is my contribution after Dec 31, 2021 considered now part of my basis for 2022 effectively making L3 now $12k?
2021 f8606
L1 = $6k
L2 = -0-
L3 = $6k –> NO Conversion in 2021…
———————————
2022 f8606
L1 = $6k
L2 = $6k
L3 = $12k –> Yes Conversion
L4 = -0-
.
.
L8 = $12k
L9 = $12k
L10 = 1.000
L11 = $12k
L13 = $12k
.
.
pt.2
L16 = $12k
L17 = $12k
L18 = -0-
Great video, easy to follow, thank you very much!!
Does the form change if you made the conversion AFTER Dec31? Say that if you have the contribution during the calendar year BEFORE Dec31, but the conversion AFTER Dec31
How can I get information on how to fill out 8606 for contributions made after calendar year?
Hi, I want to know how to fill form 8606 if I earned money before the conversion? Thank you very much for your help!
Can you please clarify if the "contribution date" is the original date of the contribution, irregardless of a recharacterization? IE, I contributed $6K to a Roth IRA on 2/25/20, but I didn't realize my income was too high until the spring of 2021 when I did my taxes. I recharacterized the original Roth contribution on 4/30/21 to a non-deductible trad IRA. What date do I use as the "contribution date"? Thank you for the helpful video.
Thank you so much for this informative video! It's the best Backdoor Roth IRA video on YouTube!
Question: How do you report backdoor IRA on form 1040? I did $5000 backdoor IRA for tax year 2020. Should it be populated on line 4a/b IRA distributions, or 5a/b Pensions and Annuities? I've read 2020 Form 1040 instructions, both line 4 and line 5 mentioned about Roth IRA Rollover.
Is all the information in this video still viable for 2021 tax year?
do you do the backdoor conversion just once, or every year?
I never knew you could roll an IRA into an employer 401. I’m in awe to learn that! Now I can finally do a back door Roth and not deal with pro rata! THANK YOU!
This might be the most informative video I have ever seen. Thank you.
So I can only contribute $6.5K to the Roth every year? Doesn'tt seem like alot if I'm already over 50. Is that correct?
If my husband has a simple IRA but I do not have any IRAs, does the pro rata rule apply to me.
If you are above the limit for a traditional but below the limit for a Roth IRA could you contribute to a Roth IRA(6000) and a nondeductible IRA(6000)? My plan would be converting the nondeductible porton to the Roth shortly after. Would that work? If so what would be the best time to make both the Roth and nondeductible contributions? Before the end of the year?
What if I converted all my traditional Ira to Roth? Would line 4 have all the amount converted? Not just the 6000 from year 2020?
Best 8606 video I watched. I contributed to traditional ira before the tax deadline. And I watched a few video, this is the first video talked about it. Thank you so much.
Thank you so so so much. You helped bail me out of a sticky situation making a contribution the following year! Can’t thank you enough.. this is the only only resource I found which explains how to do it.
how should this be handled if contribution was made between Jan & Apr & converted ? After conversion, the simple IRA showed earned interest as $0.01. My thought was to make a lesser contribution for current year to accommodate the 0.01. Any thoughts on this ?
I made an excess nondeductible traditional IRA contribution of $60 beyond my $6000 roth contribution (also ineligible due to income limit) for 2020. I plan to remove that $60 excess contribution and then go through the backdoor roth process to recharacteize $6000 and convert back to Roth. Now on line 1, what is my total nondeductible contribution? Is it just $6000? Or is it $6060 with the original excess? Once the excess is removed, do I still need to show it on Form 8606?
Hello, complicated question hope you can help. I did a backdoor ROTH after the 2020 calendar year for benefit of 2020, so I can skip ALL of part 1 after line 3. But what happens if I had a small rollover done in 2020 that I need to include in the rest of part 1 (line 6)?
Excellent explanation. Terrific job and really helped me understand it all. Thank you!!
Thank you for explaining contributions made after year end!
So in the 2020 calendar year, I have contributed $6000 + $6000 (for 2019 and 2020) to an individual IRA and converted the total sum ($12,000) into a roth IRA. This will be my first year filling out an 8606 form. Do I still just add 6000 as a basis on line 2 like you have shown? I am also using TurboTax and they never asked for an 8606 form, so it is a bit confusing
Thanks for making this great video.
Great work! Thank you very much
God bless you