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Retirement tax questions
The conversion is considered ordinary income, and would generally be subject to estimated tax rules. Waiting until the return is filed to pay any tax related to the conversion may incur under-withholding penalties.
Plan administrators/financial institutions also can withhold taxes during the conversion, although this would reduce the amount that ends up in the Roth account after the conversion.
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‎June 26, 2024
11:42 AM
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