In this video, I'm going to go over how to fill out IRS Form 8606 for a backdoor Roth IRA. You'll need to fill out this form if you performed a backdoor Roth IRA in the previous tax year.

The Roth IRA is one of the best accounts to save for retirement because of its tax advantages. When you contribute money to a Roth IRA, you do so in an after-tax fashion, meaning that you are contributing dollars that you’ve already paid taxes on.

And then, when you invest this money, this money can grow tax-free and withdrawals are tax-free as well.

Of course, there are limits placed on this account because of its unique advantages, and there are two important limits to keep track of every single year, and these two limits are the Roth IRA contribution limit and the Roth IRA income limit.

The backdoor Roth IRA is a method to contribute to your Roth IRA regardless of your income limit.

We'll fill out IRS Form 8606 assuming that we've contributed and Roth converted a maximum $6,000 contribution in the 2022 tax year in 2023 and that we do not have any funded Traditional, Rollover, SEP, or SIMPLE IRAs.

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Chapters:
00:00 Intro
00:39 Why Perform a Backdoor Roth IRA
03:58 IRS Form 8606 Assumptions
05:23 Filling Out IRS Form 8606
10:59 Outro

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Disclaimer: I am not a financial advisor, accountant, or lawyer, and as such, I do not provide financial, tax, or legal advice. This video, and any ideas presented in it, are opinions and are provided for entertainment purposes only. Please do your own research and consult your own financial, tax, or legal professional for specific advice.

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