When to pay estimated taxes for Roth Conversions

[kent]

I am doing Roth conversions and have a question on when to pay estimated taxes.

• Do you pay taxes when you do the conversion? Issue is that you don’t have the full amount available in Roth if you deduct taxes from the conversion.

• Do you estimate how much you are going to convert and divide the total taxes for Roth conversion into 4 payments, one each quarter. Issue is if you do more conversions than estimated amount then you are off on estimated taxes.

• suggestions?

Trying to not get on IRS horizon..


Thanks

[yogibearbull]

Paying estimated tax quarterly (online via IRS Direct Pay) is the best.

But if you also have tax withheld that is higher than last year's tax (could be 100-110%), a safe harbor rule applies. Some with paychecks may adjust their withholding - that is assumed to spread out through the year.

IRS want enough AND in a timely manner.

[Chahta]

If you have a tax accountant they should give you estimated tax coupons to send to irs, based on the previous year. If converting the same amount each year I would think you would be covered.