Filling out Form 8606 for a Backdoor Roth IRA

Lots of physicians use a backdoor Roth IRA to grow tax-free wealth, but a simple mistake on Form 8606 can lead to unnecessary taxes or even IRS headaches. Many assume their accountant handles it correctly, but errors—like misreporting on the 1040 or missing the pro rata rule—are surprisingly common. A properly filled-out Form 8606 ensures your non-deductible IRA contributions are tracked, your Roth conversion is tax-free, and your retirement savings stay on the right side of IRS rules. ➡ Submit a question for YouTube and/or join the WealthKeel Weekly: https://go.wealthkeel.com/m/WK 🔔 Subscribe for more insightful finance tips and hit the notification bell to stay updated! 🔔 ♥ Lovingly tap that like button if you find this video helpful. 👍 ❓ What to submit a question for a future AMA episode? → https://go.wealthkeel.com/m/WK 🚨 Looking for a team of experts? Check out the “Best of the Best” page on Physician Cents (my podcast!) Insurance Brokers, Mortgage Brokers, Student Loan Refinancing, and more. → https://www.physiciancents.com/resources Key Insights 💡 • Form 8606 tracks non-deductible IRA contributions and Roth conversions. • Errors on this form can lead to unexpected taxes. • Even accountants sometimes fill it out incorrectly. • Line 4A and 4B on the 1040 can reveal mistakes. • The pro rata rule can create tax issues if not handled properly. • Each spouse needs their own Form 8606, even on a joint return. • Gains before conversion are taxable and must be reported. • Skipping Form 8606 can make future tax tracking a nightmare. • Contributions made in the next tax year must be noted separately. • A correctly completed form keeps your backdoor Roth truly tax-free. Highlights 🕒 00:00 Introduction Filling out Form 8606 for a Backdoor Roth IRA 02:30 Spotting 1040 mistakes 4:40 Pro rata rule warning 05:10 Form 8606 walkthrough 11:29 Final checklist 🙏 Please share any topics or questions you would like to see featured in our videos in the future! Drop us a line in the comments. You can also use the link below to send us a question privately. 👉 Follow us on socials, join our weekly newsletter, get our free eBook, send us your YouTube questions, and more → https://go.wealthkeel.com/m/WK Disclosures: This information is for general purposes only. This information is not intended to be a substitute for specific professional financial or tax advice, as individual circumstances vary. Please see a financial professional, CPA, and/or an attorney in regards to your own individual situation.dividual situation.