I am planning a large Roth conversion before the end of the year. I think this will trigger an underpayment penalty for me. I should have been paying quarterly payments because the amount to get in the safe harbor would have been very small. If the penalty is based on what I would have need to pay to be in the safe harbor, it won't be very significant. If the penalty is based on the actual tax I will owe for this year, it will be much more significant. I'm trying to determine if the penalty will be large enough that it should affect how large of a Roth conversion I should do. I hope this makes sense! Thank you so much in advance for your input!!
