P>What's up everybody? It's the new year, which is the perfect time to make your IRA contributions for 2019. Today, I'm going to walk you through step by step how to do a backdoor Roth IRA contribution, specifically on Vanguard's website. So, if you use Vanguard as your brokerage account for your retirement investments, this video will show you exactly what you have to do on their website to do a backdoor Roth contribution. Now, if you don't know what a backdoor Roth contribution is or why you would want to do it, this is not the video for you. Go back and watch the video I already made on what the heck a backdoor Roth contribution is. Fundamentally, it's a way to bypass the income limits above which you're not supposed to make a normal Roth contribution. So, what I've done here is I've logged on to my Vanguard account, and what you'll see is I have two accounts listed: my traditional IRA, which has zero dollars in it, and my Roth IRA, which has $22,000 in it. So, I'm all set up right now to do a backdoor Roth contribution, where I first contribute to a traditional IRA. The only thing that has an income limit for a traditional IRA is taking a deduction for that contribution, which I'm never going to do. Because as soon as I make the contribution, it's going to be a post-tax contribution, if you will. I've never taken a tax deduction for it. I'm going to convert that to Roth. And because it's already taxed money when I do that Roth conversion from traditional to Roth, I don't owe additional taxes or anything. So, I've snuck it in the back door into the Roth IRA. I'm not making a Roth IRA contribution,...
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Fidelity 5498 Form: What You Should Know
This tax form has the same information as the 2023 Form 5498 and the latest 2023 tax form from Fidelity. This report provides information for IRA-eligible individuals who are age 25 or older during the tax year. You do not need to complete both pages of Form 5498 (contributions and tax) or the form is still valid. You can use the forms that are most convenient to you. These forms that are available are: IRA-qualified health savings account (HSA) IRA-qualified employer-contribution plan A. For the purpose of making a contribution to an IRA through an arrangement other than a spouse's name, the account is referred to as the “other person” IRA account. If you make the contribution to the other person IRA account, we will treat as if you made the contribution to your own account, and we don't consider your contribution to your spouse's account. If you are filing a joint return, and we consider your contribution to your spouse's account in the year in which it is made, we will report the contribution in the year you made the contribution to your spouse's account (and not in the year you contribute to your own account or in retirement). C. For the following IRA contributions, you can use any IRA the rules of section 408 of the Internal Revenue Code (IRS) apply to. You can use the IRA rules if the balance of the money in the IRA at the time you contribute (that is, at the time you contribute if the total contribution is to one account or to both accounts) is not more than zero, or it is more than 100% of the money in the IRA. You can use the IRA rules if you do not withdraw your IRA contributions within 4 years (6 months with you) after you make the contribution. (1) If you elect to make qualified second-time contributions to qualified retirement plans other than an IRA, you can make the contributions in any amount. You can make contributions after you have reached age 70½ if there is no penalty for making the contributions. (2) Contribution amounts for the following IRA contributions are reduced by any additional contributions you elect not to make. If you make excess contributions for more than one year to an IRA, only one contribution is required to be in an IRA for purposes of allocating contributions among qualified retirement plans that you participate or intend to participate in. However, you are not required to allocate contributions among qualified retirement plans.
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Video instructions and help with filling out and completing Fidelity Form 5498
