How To Fill Out IRS Form 8606 - Backdoor Roth Instructions For 2023
Vložit
- čas přidán 25. 09. 2023
- The Backdoor Roth is one of the best tax savings strategies available in 2023, but it requires some additional paperwork to do correctly.
Michael Johnston, host of the Tax Efficient Investor podcast, walks through the correct way to fill out this form in 4 different scenarios.
Subscribe to the Tax Efficient Investor podcast here: wealthchannel.com/podcasts/ta...
Watch Episode 1 (The Backdoor Roth IRA Made Simple): wealthchannel.com/2023/08/and...
###
At WealthChannel, we show you how to protect and grow your wealth with alternative investment strategies.
UPCOMING EVENTS to help you grow your wealth:
wealthchannel.com/events/
GET SOCIAL with us:
🔗 LinkedIn - / wealthchannelcom
🐦 Twitter - / wealthchannelco
LEARN MORE at:
wealthchannel.com/ - Zábava
Thank you! I finally got it after watching it 10 times.
Thank you for this detailed and super clear explanation of the different scenarios to accomplish a backdoor roth conversion. I've always had questions about how to do it properly with existing traditional IRAs. Your explanations help me figure out if we should bite the bullet and convert the whole amount of the traditional IRAs to the roth and pay the taxes one time. Just awesome. I'll be using this video as reference for other family and friends who are in the same situation. Cheers!
Scenario 2 is me, thank you so much!
Thank you so much!
Thank you so much for the super clear explanations that covers various cases. It is very helpful!
Thank you so much for making this video. I finally understand this. I was hung up on line 22 and 24, but you helped me realize that is part 3 , and part 3 is just for distributions.
thanks
Thank you!
Thank you finally a great explanation
Glad it helped!
scenario 4 is me
but a few more complicated tweaks.
thank you as i venture off into another week of, i hope i'm doing my taxes right
Great tutor and presentation. My question is do I need to enter the value for my 2022 Roth conversion this year when I fill out 8606 for 2023
Excellent tutorial. Can you reclassify 401K money that has been rolled into an IRA back to a 401K?
You are so great . How to report prior years excess Roth IRAs withdrawal ( distribution ） ?
Thank you for your excellent video. I have a question on line 6. I have a traditional IRA but it is not with the same brokerage that I am doing ROTH on. Do I still get to use the clean method?
When you convert to a Roth, and pay the tax to the IRS, do you have to fill out a form when you want to pay estimated tax? Or just go online and use the IRS online payment system? Not sure how to handle paying the tax when I convert. Thanks!
Sorry that I have another question. I have another 1099R form in code H. Then it is just a roth to roth transfer. Do I need to do anything in 8606? Since no non-deductible IRA contribution is involved here, I will presume no?
2 Questions: I'm married filing jointly and did a back door Roth in my name. 1) I plan to do a 8606 but does my wife also need to do a separate one? 2) If so, does she just enter zeros or use the same data I populated in mine?
How to report withdrawal prior year Roth excess contributions, please help
No scenario with line 4 filled? When you covered scenario 1, you said that you will have a scenario where line 4 will be filled, but none of the scenarios have line 4 filled. Should it be filled in scenario 2, "Late contribution?"
First time doing a backdoor roth ira. Contributed and converted in January 2024. I did not get a 1099-R this year. Do I still report that I contributed to a traditional IRA (turbotax) for 2023? Do I need to do a 8606 this year (for 2023)?
Great video, what happens in a scenario that I deposited 6500 max to traditional and before converting to Roth it earned 10$ interest in the same year and I ended up converting the entire 6510 to Roth to zero out the traditional balance at end of year?
Yes, very common scenario, please make a video on it!
@OpportunityDb
@@sidc4320 @OpportunityDb
I am doing a late backdoor. I will do it this month, and I see I fill out that first form, do I send that form in with my taxes I fill out for 2023 or just hold on to it and file it with the other contribution for 2024. So, contribution 6,500 this month and do the simple first 8606 form, do I send this form in with my taxes for 2023, or just wait until I do my taxes next year in 2025 for 2024. But, learn my lesson and do another contribution in December 2024 for 2024, and two forms are turned in with my 2024 taxes?
id like to know too!!
I have a similar situation. In 2024, I made maximum contributions to mine and my wife's traditional IRA accounts for 2023 and also converted both contributions to Roth's at the same time in 2024. I'll want Michael Johnston to jump in if I have this answer wrong, but what I understand from talking with CPA's that I work with and from other content here and elsewhere, is that for my 2023 tax return I'll only show the traditional IRA contributions on Form 8606 for myself and also for my spouse. Then next year I'll include the conversion amounts done for 2023 in 2024, along with my 2024 contributions and conversions.
If I have that process incorrect, please correct me.
What if I did a back door Roth conversion in 2022 but never filled out the 8606? I didn’t know I had to fill it out until now for 2023.
You can amend your 2022 return and attach 8606
@OpportunityDb Question on Scenerio #2: I did a late Traditional IRA $6500 contribution for year 2023 and also made Traditional IRA $7000 contribution for year 2024. Both were done this year on 1/15/2024. I then converted the full $13,500 to ROTH IRA on 1/16/2024. I have followed your instruction and completed 2023 Form 8606. I don't see 2024 Form 8606 in the IRS website. Do I complete that this year for my 2023 tax return? Or is it not be completed until 2025 for my 2024 tax return?
I had a similar question, then figured it out. Any contribution should be filed for the year, for example, if you contributed on 2023, or early 2024 FOR the 2023 TAX YEAR IRA, you should file 8606 part 1 on 2023 tax return. Any convertion is counted on THE YEAR it HPPENED (you can convert all previous years contributions all at once). For example, if you converted All your previous years traditional IRA to roth IN 2024, you file it on 2024 tax year retun part 1 and 2, which is by Arpril 15, 2025. (IRS has your converstion basis record since you filed each year for the IRA contribution).
@@tonywen6684 thank you sir. Did you have any interest earned in the traditional IRA that posted after converting to ROTH? I earned $3.89 for the 2 days I had the funds in my Traditional IRA. If so, what did you do with that?
So what I don't understand if it is a non-deductible account that we're going to contribute to first and then we wait a day and roll it over to a Roth IRA why would we not just contribute to the Roth on day one if we're still going to be taxed?
Is it because contributing to a traditional IRA will decrease the gross income
?
careless tax law that lobbyists happen to enjoy enough to keep broken
Can you upload a video where you made late contributions for 2 years in a row?
I have 335K in Rollover IRA from my old job. I want to do backdoor Roth IRA this is year for 2023. Do I have to treat rollover IRA as traditional IRA? And put the existing investment in form 8606?
yes you would but it would be smarter to rollover the ira into a 401K so that the backdoor roth ira contribution is tax free. if you keep it in the rollover ira & do a backdoor roth ira contribution you're going to create a taxable event on the conversion.
Question: I like to do 401-k (not a Roth 401-k plan) conversion. Do I need to fill out Form 8606 for 401-K roth conversion?
Form 8606 is for Nondeductible IRAs only. So: no -- you would not fill this form out if you are doing a Traditional-to-Roth 401(k) conversion.
Thanks
"Form 8606 is for Nondeductible IRAs only"........I believe this is incorrect. Form 8606 is not only for nondeductible contributions. It serves multiple purposes other than for non-deductible contributions. Form 8606 also needs to be filed if you make a DEDUCTIBLE contribution and then subsequently convert to Roth. You would then only complete part II of form 8606.