Are you utilizing the backdoor Roth IRA conversion strategy? Do you see a tax form numbered 8606 with your tax return every year? Are you reading this and already thinking to yourself how boring and confusing tax planning is? You're not alone! But this is something you're going to want to take note of.
Reducing the amount of tax documents you are required to file every year could be a great way to save a little bit of money on your tax preparation costs. So if you find yourself with IRS form 8606 every year, this episode is for you!
Non-deductible IRA contributions can inadvertently happen in a tax year. But the basis of those contributions will stay with you forever. And to make matters worse, it can be complicated to get rid of!
In this episode, Derek takes a closer look at backdoor Roth conversions and what it means to have IRS form 8606 filed every year and what you can do about it. He also ends the episode with an action item all listeners should take!