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 maxi
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