IRA to RothIRA convertion - how and where to pay for it

[Charlie Mak]

So, I did the brave/stupid thing: I asked my bank to move $10,000 (not real number) from my IRA to a newly opened RothIRA account and I certified to them I will be paying for the withholding.  I sent the money (more than 20% of it, $2000) to IRS subsequently as part of next quarterly estimated tax payment.  I assume at years end, my bank will be sending me a 1099R to have this all settled.  Is that correct?  (I am so confused) 

So, did I converted $10,000  or $10,000+fee+taxes?

[NCperson]

@Charlie Mak - you converted what you instructed the Bank to convert - the $10,000 per your post.

then you paid the tax to the IRS OUTSIDE the IRA with after tax money.  this is NOT part of the IRA conversion. 

You will receive a 1099-R for the $10,000 from the Bank in early 2024.  That has to get reported on your tax return.

You will also want to report the estimated payment of $2,000 on your tax return.

it's rather simple 

[fanfare]

If your bank charged you a fee of , say, $50. You may find only $9,950 in your Roth IRA.

it depends on how the bank sets its fees.

In that case, if you don't put $50 into your Roth within sixty days,

you may have an early withdrawal of $50 from your Traditional IRA which is penalized.

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The smart thing to do is put your Roth into a self-directed brokerage Roth IRA, where you can make the investment decisions with most flexibility.

@Charlie Mak