It's better to invest/convert the full amount with no withholding if you have cash to pay the taxes later.We are doing a Roth conversion next week. No with-holding for taxes.
Taxes on the conversion will be approximately $28k for fed, $12k for state. 22% tax bracket
When do we pay federal income tax and state income tax for a December roth conversion?
And how...is their a form to send in with a check or simply when filing in April?
Or is it better to not invest the entire amount and with-hold $40k for taxes?
Thanks.
But don't wait till April if you have so little withholding that you will have to pay a penalty.
Do an estimated tax payment before the January 15, 2025 deadline. This is sometimes called a quarterly IRS payment. Pay enough to avoid a late payment penalty.
Statistics: Posted by tadamsmar — Thu Nov 28, 2024 8:06 am