How Do I Do a Roth Conversion and Which Forms Will I Need?

This episode answers the question, "How do I do a Roth conversion, and what forms do I need to fill out with the IRS?"

David explains that there are three basic steps to convert your IRA to a Roth IRA.

Carrying out these three steps will likely take a few weeks – the process could be slightly shorter if everything is handled by the same financial institution.

Starting this process in December isn't ideal because financial institutions are often overwhelmed with conversion requests. 

If the conversion isn't completed by December 31st, the Roth conversion window will close, and you won't be able to reopen it for that tax year.

David discusses when and why 100% of your IRA conversion may not be taxable.

He also touches on the different forms you'll need to fill out, including instances where you may want to use form 8606.

As David puts it, "Double taxation is something you should avoid at all costs."

 

 

Mentioned in this episode:

David's upcoming book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track

David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code

DavidMcKnight.com

DavidMcKnightBooks.com

PowerOfZero.com (free 3-part video series)

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David McKnight on YouTube

Get David's Tax-free Tool Kit at taxfreetoolkit.com