@jayhawkdave wrote:
@macuser_22 I wish I just left the money in her old 401k now but I was worried that her previous employer was going out of business and I wanted control of the money before that happened. You say I should only have to pay an additional $17,200 than why is Turbo Tax saying I owe $52K in addition to the $38k I already I paid? I'm so confused and stressed with this.
Dave
See @dmertz answer above. I was assuming that the tax on the 1040 line 5b was $52K which is 14.9% of the $348K. If you are being taxed at the 24% tax rate then the total tax would be about $83,5200+ (on 1040 line 5b) minus the $38K already paid leaves about $45,520 additional tax on the conversion. (Your actual tax depends on your total taxable income.)
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
