naras-tx
New Member

Retirement tax questions

Thank you for the detailed answer on how to do this in Turbo Tax.  I tried it, and sure enough it works great.  I appreciate your help.

On the comment you made about withholding, Its easier if it is withdrawal from IRA.  But conversion from traditional IRA to Roth IRA become more complex.  To do a withholding, an additional amount need to be withheld, thus increasing the withdrawal.   It also gets into recursive issue.  Although not in my case, in some cases it may lead to early withdrawal penalty.  In addition typically most firms would do a 10% withholding (although I believe this can be changed by request).  At least in my case that 10% would be too high, due to other deductions etc.  I still have not done it yet (for 2017) - I will call my brokerage and see if they can do proper with holding.  

For standard withdrawal from IRA, I am in total agreement with you, doing a withholding is the right thing to do.  

Thanks for your help and comments.