When to make tax payment for Roth conversion?

Forum|Forum|7 years ago
June 3, 2019
4 replies
49 views

Planning a 4th Qtr. 2018 Roth conversion ($70K) - can I pay online once in 4th Qtr. at time of conversion or must I make quarterly estimated payments? (I do not have safe harbor where I could pay in 2019 at tax filing time). Do not want any penalties, etc.

In 2017 I also had a Roth conversion where I had safe harbor since I did not do one in 2016 and my 2017 withholding from my pension check exceeded my 2016 taxes. Thus no safe harbor in 2018 as my withholding is far short of my eventual tax liability.

As before - my current pension withholding will not cover my tax liability with a conversion. I am likely to owe about an additional $5K to Ca. and about $12K to Fed.

TurboTax Deluxe iOS

CarolC

Level 7

You are smart to plan. You can pay online at the time of your conversion. This will be an estimated payment for the 4th Quarter. You can also mail in a 4th Quarter 1040-ES voucher to the IRS by January 15, 2019. The same would apply to your California return.

As you already know, when it comes to making estimated payments all that matters is that you have enough paid in for the quarter. It can be from withholding through a pension or other income sources. You could also ask the IRA custodian to withhold the tax. However, this is generally not advised as this will reduce the amount of the tax-exempt income now working for you in your Roth.

pwerth00

Level 2

I did a roth conversion on September 5 2019 and need to file an estimated tax for Federal and State. Can I do that electronically from my Turbo Tax 2018 which I downloaded and make the payments online or do I have to do something else?

THanks