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 Louisville Revenue Forms 2018

Louisville Metro Revenue Commission W 1 D 2018-2025 Form

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we'll be going over IRS form 8606 non-deductible IRAs before we get into the form itself I'd like to talk a little bit about how this form can help you when it comes to your backdoor Roth conversion strategy sometimes when people contribute to a non-deductible IRA and then later on try to do Roth conversions they can fall afoul of some of the rules that are in place regarding Roth conversions most notably the the rule about prorating uh IRA conversions from non-deductible or after tax and pre-tax IRAs so for example if you have an IRA that's got fifty thousand dollars of pre-tax money and contributions in it and you've got fifty thousand dollars of non-deductible contributions in it for a total of one hundred thousand dollars and you do a ten thousand dollar Roth conversion uh you would have to pay taxes on the fifty percent of that account balance that was considered pre-tax money so uh this form helps taxpayers uh understand and keep track of the basis

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