I plan on converting some of my traditional IRA to a Roth this year. I will also have to pay quarterly taxes. How to I figure out how much to pay the IRS and when?

My ROTH conversion will be my only income as I am retired. However, I also receive interest and dividends to also pay quarterly taxes on.

114

Level 1

Feb 14, 2021 2:21:54 PM

The federal tax on a Roth IRA conversion will be collected by the IRS with the rest of your income taxes due on the return you file in the year of the conversion. And it will be a good idea to pay estimated quarterly tax if you expect to have a big tax liability. You can calculate and pay 10-15% of your income toward the estimated tax. The 2021 quarterly estimated tax deadlines are:

2021 1st Quarter (January 1 – March 31): April 15, 2021
2021 2nd Quarter (April 1 – May 31): June15, 2021
2021 3rd Quarter (June 1 – August 31): September 15, 2021
2021 4th Quarter (September 1 – December 31): January 18, 2022

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I plan on converting some of my traditional IRA to a Roth this year. I will also have to pay quarterly taxes. How to I figure out how much to pay the IRS and when?