I am retired (75) and have no work related income. I have a "Rollover" IRA (probably because it was funded via a 401K), a small Roth IRA, a taxable savings account and Social Security. My accounts are with Schwab.
I would like to begin moving money from the Rollover IRA to my Roth IRA. I'm used to taking RMDs and withholding taxes at the time of the withdrawal. My understanding is that I can do the same with the Roth IRA transfer. I would not, however, want to withhold taxes directly from the Roth money but pay the taxes out of the taxable account.
I understand that I can set the withholding to 0% when setting up the transfer, and then pay when I file my taxes. I see a lot of confusing information, however, on possible tax penalties. It appears that I may trigger a requirement for quarterly tax payments which I definitely don't wan to be bothered with. Can someone who is familiar with this situation provide any insight as to how I can avoid this problem?
