Backdoor Roth IRA EXPLAINED - 2021 (how to do it step by step)

Backdoor Roth IRA Conversion EXPLAINED STEP BY STEP (how to do it). When done correctly, the Backdoor Roth IRA strategy can be a great way to get more money into your after tax Roth IRA. However, very few people talk about or understand the Aggregate Rule (Pro Rata Rule) in regards to actually being able to do a proper back door roth ira conversion by converting funds from your Traditional IRA to your Roth IRA through the Backdoor Roth IRA method. In this video we'll discuss WHAT is a Backdoor Roth IRA, WHO should consider the Back Door Roth IRA, WHY it is stupid to do the Roth IRA (until you're ready), the Aggregate Rule in detail, and how to do the Back Door Roth IRA correctly.

Here's my other video about Roth Conversions: https://youtu.be/Hzq9bcFnY0Q
Tax Bracket Management: https://youtu.be/L6lMJd2dXn0
2021 Tax Brackets & Retirement Limits: https://youtu.be/CUniy-FZ2sY

IRS From 8606 (for 2020): https://www.irs.gov/pub/irs-pdf/f8606.pdf
IRS FAQ's about Rollovers & Roth Conversions: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-rollovers-and-roth-conversions
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OTHER VIDEOS YOU MAY LIKE
2020 Retirement Account Limits: https://youtu.be/KwyME2yA3_8
Tax Rates: Marginal vs Effective Tax Rates: https://youtu.be/yVHk9obdti8
Tax Bracket Management: https://youtu.be/L6lMJd2dXn0
401(k) - Roth 401k vs Pre-Tax 401k: https://youtu.be/4lfnZ4ba1kc
401(k) - Plans No Longer Make Much Sense: https://youtu.be/WBxc8tRsW58
401(k) - How Aggressive Should it be: https://youtu.be/FSuJdc-Tw24
401(k) - Should I...Cash Out my 401k: https://youtu.be/dQYrSMi5POc
401(k) - Should I...Borrow from my 401k: https://youtu.be/wgz94XM6Kzo
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Timestamps / Chapters:
0:00 - Intro
0:51 - What is it?
1:35 - Numbers & Stats
3:19 - Why you can't do it
6:08 - Aggregate Rule
8:10 - How to do it

ABOUT ME 👇

I've been involved in people's financial decisions for 15+ years (7 yrs Real Estate experience & 8+ yrs as a former Financial Advisor)...I now bring the financial successes, mistakes, failures, and best financial habits/tips to you through these videos.

My mission is to bring Financial Awareness to the forefront of your daily decisions so you can: improve your quality of life, increase your net worth, and grow upon your financial literacy. My videos are a reflection of my real-world experience as a real estate investor, stock market investor, student of finance, entrepreneur, and of course...my experience as a Former Financial Advisor.

This channel allows me to share my passion for personal finance, stock market investing, real estate investing, and entrepreneurship. I produce content that I would want to watch, and because of that, I give 100% effort in every video that I make. I also believe in complete transparency and open communication with my audience.

Subscribe if you are interested in:
#BackdoorRothIRA
#RothConversions
#FinancialPlanning
#AggregateRule

DISCLAIMER: I am not a financial adviser or a certified public accountant. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion.

Видео Backdoor Roth IRA EXPLAINED - 2021 (how to do it step by step) канала Financial Awareness with K.Scholl