This tutorial video walks you through how to report a BACKDOOR ROTH IRA on TurboTax, step by step, with a correct example of FORM 8606 shown.
🔴 Check out more similar videos
====================================================
🔥 TurboTax steps to avoid RSU & ESPP double tax –
🔥 RSU double tax explained:
🔥 ESPP double tax explained:
🔥 Know your employee benefits (HSA, 401k, ESPP & more):
🔥 Learn about the 401k:
🔥 How to read your payslip:
🔥 401k investment tips for beginners:
🔴 Journeys of the Conscious Engineer
====================================================
Personal Finance Videos:
Make your own food (vegetarian):
Subscribe! Thanks!
🔴 Disclaimer
====================================================
The author of this video is not a certified financial advisor nor a tax expert. Please consume this video for educational purposes only and not take it as professional financial advice.
🔴 Summary
====================================================
A “BACKDOOR ROTH IRA” conversion is a popular technique high-income earners in the USA can use to work around the ROTH IRA contribution restrictions due to income limits.
The move involves one CONTRIBUTING post-taxed money to a Traditional IRA, and then later CONVERTING them into a ROTH IRA. This conversion is tax-free for the most part (see exceptions in the video).
When such a financial move is executed, a FORM 8606 needs to be filed as part of your tax returns, so that the government does not tax you on this move.
This video provides a walkthrough tutorial on how to use the popular tax filing software, TurboTax, to report the BACKDOOR ROTH IRA so that a Form 8606 can be correctly generated.
And finally shows how a correctly filed Form 8606 should look like.
🔴 Timestamps
====================================================
0:00 – Intro
1:02 – What and why of BACKDOOR ROTH IRA
4:00 – BACKDOOR ROTH IRA TurboTax walkthrough
11:17 – Form 8606 Review
🔴 Other
====================================================
thefinancebuff.com posts on BACKDOOR ROTH IRA TurboTax tutorials:
Form 1099R instructions:
#backdoorROthIraTaxes #turboTax #backdoorRothIra…(read more)
LEARN MORE ABOUT: IRA Accounts
TRANSFER IRA TO GOLD: Gold IRA Account
TRANSFER IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
I want to make doing taxes simple as possible so that I have all the tax info/forms needed in a single year. I think I’m tripping up a bit bc contributions up to April. What months are best to do the contribution/conversion so it’s simplified for TurboTax ?
How can someone take advantage of this feature who has already have a traditional ira and has the money been accumulated for prior year? Does he have to open a new IRA at the different or the same institution to take advantage of this backdoor IRA?
Great video! Helped put a lot
Thnx, friend! It really helped.
Great video. Exactly what I was looking for. Thanks for showing the tool walkthrough.
THIS WAS SUPER HELPFUL!!! I used HR Block but this was still golden information. Thank you!!
Super helpful for clean backdoor Roth which I did this year. Thanks! Do you have videos for one where you contribute between Jan and April for the previous year?