If you convert $10,000 to a Roth, expect to pay 24% federal income tax or more if you are in a high income bracket.
Therefore, make an Estimated Tax payment of $2,400 (or more) in the quarter when you have the custodian convert $10,000.
Then make an Estimated Tax payment to your State if you have state income tax.
As you can see, doing a Roth Conversion can be very expensive if you have taxable income.
Now do you still think it is a desirable thing to do ?
