///////////////////////////////////////////////// Get answers FASTER... Join this channel to get access to perks: Chat on discord: Join Link Support on Patreon: Get IRS FORM W4 TAX WITHHOLDING HELP HERE ----------------------------------------------------- Are you ready for professional investment advice? We can help you with financial planning and asset management. Let us guide your investments to your financial freedom. START HERE Our financial planning process is an ongoing relationship because as you grow, your financial plan grows with you. At Sickle Hunter Financial Advisors, we believe that saving and making sound financial decisions will help improve your life’s changing needs and objectives. Retirement, college planning, wealth building, social security, and career benefit packets are only a few of the financial decisions that you may face in your lifetime and we’re here to help guide you. TRAVIS T SICKLE, CFP®, EA®, AAMS®, CRPC®, RICP® CERTIFIED FINANCIAL PLANNER™ Company Website: twitter: @travissickle Instagram: facebook: LinkedIn: Sickle Hunter Financial Advisors 1646 W Snow Ave. Suite 144 Tampa, FL 33606 ------------------------------------------------------- Gear Used in Videos Partnership referral links Solo 401k plan Documents Aura Identity Theft Protection *Up to 50% off* HTTPS://www.aura.com/travis Bitcoin IRA All Amazon links are affiliate links ____________________________________________________________________________ Information in this video is for educational and entertainment purposes only. sicklehunter.com/disclosures ____________________________________________________________________________ #travissickle...(read more)
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If you're planning to do a backdoor Roth conversion, you'll need to fill out IRS Form 8606. This form is used to report non-deductible IRA contributions and the amount of conversions from traditional IRAs to Roth IRAs. Here are four examples of how to fill out Form 8606 for a backdoor Roth conversion. Example 1: No Previous IRA Contributions If you haven't made any IRA contributions in the past, you'll enter zero on lines 1-4 of Form 8606. On line 5, you'll enter the total amount of the conversion from your traditional IRA to your Roth IRA. If you didn't earn any interest or gains on the conversion before the end of the year, the amount on line 6 will also be the same as the amount on line 5. If you did earn any interest or gains, you'll need to calculate the taxable amount on line 6. Example 2: Previous IRA Contributions If you've made IRA contributions in the past, you'll need to report them on lines 1-4 of Form 8606. Line 1 is where you'll enter the total amount of non-deductible contributions made to your traditional IRA during the year. Line 2 is where you'll enter the total amount of non-deductible contributions made to your traditional IRA in previous years. Lines 3 and 4 are used to calculate the percentage of your IRA that is non-deductible. Once you've completed lines 1-4, you'll move on to line 5 to report the amount of your conversion. If you haven't earned any interest or gains on the conversion before the end of the year, the amount on line 6 will be the same as the amount on line 5. If you did earn any interest or gains, you'll need to calculate the taxable amount on line 6. Example 3: Partial Conversion If you only converted a portion of your traditional IRA to a Roth IRA, you'll need to calculate the taxable amount on line 6 of Form 8606. To do this, you'll need to divide the amount of the conversion by the total value of your traditional IRA, including any deductible contributions, as of December 31st of the previous year. You'll then multiply that percentage by the amount of any earnings on the conversion to get the taxable amount. Example 4: Multiple IRA Accounts If you have multiple traditional IRA accounts, you'll need to combine the values on lines 1-4 of Form 8606 for each account before moving on to line 5. You'll then report the total conversion amount on line 5. If you've earned any interest or gains on the conversion, you'll need to calculate the taxable amount on line 6 using the combined values of your traditional IRA accounts as of December 31st of the previous year. In conclusion, filling out IRS Form 8606 for a backdoor Roth conversion may seem intimidating at first, especially if you have multiple IRA accounts or have made contributions in the past. However, by following these examples and using the instructions provided by the IRS, you can accurately report your non-deductible contributions and conversions and avoid any potential tax penalties. https://inflationprotection.org/4-examples-on-how-to-fill-out-irs-form-8606-for-backdoor-roth-conversions/?feed_id=93465&_unique_id=6450a2558a1c0 #Inflation #Retirement #GoldIRA #Wealth #Investing #backdoorrothconversions #form8606 #proratarule #rothconversions #travissickle #BackdoorRothIRA #backdoorrothconversions #form8606 #proratarule #rothconversions #travissickle
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