I'll probably do a Roth IRA conversion before the end of this year. I'm not exactly sure yet of the amount. I only decided to do this in the last couple of weeks. I've done a rough calculation of my 2024 taxes.
I'm 69 years old, not disabled. Can't honestly say that I have some kind of hardship.
I worked as an independent contractor this year. My total income is $14,058.00 which includes my Schedule C and Interest Income. My total tax is $1,067 according to the calculator, which is all self-employment tax.
I did not have any tax withheld from my income, nor did I make any estimated payments (mistakes, I know). If I do a Roth conversion it will of course add to my income this year. I'm sure I'll have to pay a penalty. I'd love not to, but I don't think that I qualify for any of the "safe harbors". Is there any way to estimate in advance what my penalty would be for different increases in income? Also, is there a way to at least reduce the penalty? Many thanks for your time.
