In this video, we'll walkthrough a step by step tutorial on how to setup a backdoor Roth IRA account with Charles Schwab, how to contribute to backdoor Roth IRA account through a traditional IRA account by converting traditional IRA to Roth IRA, and introduce you to Form 8606. Buy Meet Bryant a coffee ☕️ How to buy and sell options on Tastyworks mobile app 2021 - step by step tutorial How to sell put options and close to take profit | Options Trading 101 Why you should sell put options | Warren Buffett Style Option delta vs option premium | Option Greeks 101 How to buy and sell Stock Options Charles Schwab Mobile App How to trade options on thinkorswim mobile app - TD Ameritrade trading platform How to view Option Greeks on Charles Schwab Mobile App | How to trade options 101 Time code: 0:00 - Intro 00:23 - How to open Traditional IRA & Roth IRA accounts 02:27 - How to contribute to backdoor Roth IRA (Convert traditional IRA to Roth IRA) 04:24 - Form 8606 Introduction Highly Recommended Investing Book List: The Intelligent Investor by Benjamin Graham: Security Analysis by Benjamin Graham: The Interpretation of Financial Statements by Benjamin Graham: Common Stocks and Uncommon Profits by Philips Fisher: Rich Dad Poor Dad by Robert Kiyosaki: Disclaimer: I’m not a financial advisor. Views and opinions shared in this channel are only for entertainment purposes. These are not financial investment nor advice. Past performance is not a predictor of future results. You should not take any of this information as guidance for buying or selling any type of investment or securities. Always do your own research, due diligence and consult a licensed financial advisor before investing....(read more)
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Introduction: Backdoor Roth IRA is an alternative way to save for retirement. A traditional Roth IRA has strict income limits that exclude many high-income taxpayers, which can limit their ability to save for retirement. However, with the backdoor Roth IRA, you contribute to a traditional IRA and then convert the funds to a Roth IRA. Charles Schwab is one of the leading financial institutions that allow investors to contribute to a Backdoor Roth IRA. In this article, we’ll provide step-by-step instructions on how to set up and contribute to a Backdoor Roth IRA with Charles Schwab. Step 1: Open a Traditional IRA with Charles Schwab The first step is to open a traditional IRA with Charles Schwab. If you already have an account with Charles Schwab, you can skip this step. Otherwise, you can visit Charles Schwab’s website and select “open an account.” You’ll be asked a series of questions, including your name, address, date of birth, and Social Security number. You’ll also be asked to select the type of account you want to open. Choose a traditional IRA. Step 2: Fund your Traditional IRA Once you’ve opened your traditional IRA, you’ll need to fund it. You can do this by transferring money from an external account or by depositing a check. Charles Schwab allows you to contribute up to $6,000 per year to your traditional IRA if you’re under 50 and up to $7,000 per year if you’re 50 or older. Step 3: Convert your Traditional IRA to a Roth IRA After you’ve funded your traditional IRA, you can convert it to a Roth IRA. This is the crucial step in setting up your Backdoor Roth IRA. You can do this by logging into your Charles Schwab account and selecting “convert to Roth IRA.” You’ll need to provide some necessary information, including the amount you want to convert and the type of tax return you’re filing. If you’re not sure how much to convert, consult a financial advisor who can help you figure out what’s best for your situation. Step 4: Pay Taxes on the Conversion When you convert your traditional IRA to a Roth IRA, you’ll have to pay taxes on the converted amount. The IRS treats this conversion as income, which means you’ll need to pay taxes on it in the year you convert it. Charles Schwab will send you a 1099-R form at the end of the tax year, which will show how much you converted and how much you’ll need to report as income on your tax return. Step 5: Contribute Regularly Once you’ve converted your traditional IRA to a Roth IRA, you can contribute to it regularly. You can contribute up to the annual IRA contribution limit, which is $6,000 if you’re under 50 and $7,000 if you’re 50 or older. Regular contributions to your Roth IRA will help you build up your retirement savings over time. Conclusion: The Backdoor Roth IRA is an excellent option for those with high incomes who want to save for retirement. Charles Schwab is a top-notch financial institution that allows investors to contribute to a Backdoor Roth IRA. By following the simple steps outlined above, you can set up and contribute to your Backdoor Roth IRA with ease. Remember to consult with a financial advisor if you’re not sure how much to contribute or if you have any questions about your retirement savings. https://inflationprotection.org/step-by-step-tutorial-on-setting-up-and-contributing-to-a-backdoor-roth-ira-with-charles-schwab/?feed_id=101452&_unique_id=6470f90bbc678 #Inflation #Retirement #GoldIRA #Wealth #Investing #401k #backdoorrothiraexplained #contribution #Conversion #converttraditionaliratorothira #fidelity #howtocontributebackdoorBothaIRACharlesschwab #howtodobackdoorRothIRA #howtosetupbackdoorRothIRACharlesschwab #irstaxform8606 #legal #promotioncode #Rollover #stepbysteptutorial #tastyworks #taxloophole #TaxSaving #traditionalIRA #vanguard #walkthrough #BackdoorRothIRA #401k #backdoorrothiraexplained #contribution #Conversion #converttraditionaliratorothira #fidelity #howtocontributebackdoorBothaIRACharlesschwab #howtodobackdoorRothIRA #howtosetupbackdoorRothIRACharlesschwab #irstaxform8606 #legal #promotioncode #Rollover #stepbysteptutorial #tastyworks #taxloophole #TaxSaving #traditionalIRA #vanguard #walkthrough
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