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Video instructions and help with filling out and completing What Form 944 Pr Revenue

Instructions and Help about What Form 944 Pr Revenue

Hello and welcome to this episode of unvested shares. In this video, I will be showing you how to fill out Form 80606, which is the IRS form that needs to be submitted when you do a backdoor Roth conversion. So, again, when you do a backdoor Roth conversion, which I will briefly run over again as a review, you need to include Form 80606 when filing your tax return. I'm going to show you how to fill that out in today's video. As a brief reminder, a backdoor Roth conversion, or back to a Roth IRA, is a strategy that is often used by high-earning individuals who cannot contribute outright to a Roth IRA because they make too much money. Stated quite simply, in 2018, if you are a single filer and earn over $135,000, you can no longer contribute to a Roth IRA. If you are a joint filer and as a unit you earn over $199,000, you cannot contribute to a Roth IRA. So, again, the backdoor Roth conversion and the strategy there is you contribute up to $5,500 in earned income if you're under the age of fifty to a non-deductible IRA. And you then wait at least one period, one I would say, one statement period, if not an entire year before then converting that non-deductible IRA into a Roth account. And since you already paid your taxes before contributing to that non-deductible IRA, you won't owe any additional taxes when you convert to a Roth. So that is the high-level strategy of what a Roth conversion, excuse me, a backdoor Roth conversion is. And you know, a lot of times folks who are high earners will max out their 401k, and then on the side they'll also be contributing up to the $5,500 amount if they're under...