Everything You Need To Know About Backdoor Roth IRA with Jennifer Quire

<p>Why should physicians in practice consider a Backdoor Roth IRA? Make sure to do it correctly and efficiently to get the greatest benefits.</p> <p>&nbsp;</p> <p>In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks to Jennifer Quire about the Backdoor Roth IRA. Jennifer is Daniel&rsquo;s colleague at <a href="https://wrennefinancial.com/our-team/">Wrenne Financial Planning</a> and a fellow Certified Financial Planner CFP&reg;.&nbsp;</p> <p>&nbsp;</p> <p>Topics Discussed:</p> <ul> <li>When to consider the &ldquo;back-door&rdquo; Roth IRA instead of the normal Roth IRA</li> <li>Steps to take to go through the &ldquo;Back-door&rdquo;</li> <li>Common mistakes to avoid</li> <li>Step Transaction Doctrine: No multiple steps allowed to circumvent IRS&rsquo;s rules</li> <li>What is the pro-rata rule and why is it important to watch out for?</li> <li>Why is the Roth IRA beneficial to physicians and others? <ul> <li>Serves as additional option for tax favored retirement savings</li> <li>Provides tax diversification (future tax-free withdrawals)</li> <li>No Required Minimum Distributions &ldquo;RMD&rdquo;s required on Roth IRAs</li> <li>Often provides additional creditor protection</li> </ul> </li> <li>Verify <a href="https://www.irs.gov/forms-pubs/about-form-8606">Form 8606</a> is included in your federal tax return</li> <li>Verify that line 4b is correct on your <a href="https://www.irs.gov/forms-pubs/about-form-1040">Form 1040</a> (main form in federal tax return)</li> <li>Verbally notify your accountant that you&rsquo;re funding the back-door Roth IRA</li> <li>Save the <a href="https://www.irs.gov/forms-pubs/about-form-5498">Form 5498</a> (verifies funding) and <a href="https://www.irs.gov/forms-pubs/about-form-1099-r">Form 1099-R</a> (verifies Roth Conversion)</li> </ul> <p>&nbsp;</p> <p>Links &amp; Bonus Content:</p> <p><a href="https://thefinancebuff.com/the-backdoor-roth-ira-a-complete-how-to.html">Backdoor Roth: A Complete How-To</a></p> <p><a href="https://www.physi