Roth Conversion Question

newthreads2002 — Fri, 10 Jan 2025 22:00:21 GMT

If you complete a Roth conversion in January '25 and there are taxes due in April '26 would you have a penalty if you paid the taxes with the April 26 filing? Currently I have no income and am not working, so not sure how to distribute taxes evenly throughout the year and pay them.

Re: Roth Conversion Question

Opus 17 — Fri, 10 Jan 2025 22:46:35 GMT

If you do a conversion in January 2025, the IRS will want to see the estimated taxes either paid all at once (no later than April 15, 2025) or in 4 equal installments due April 15, June 15, Sept 15, and January 15, 2026. If you don't make the estimated payments, you can be assessed an underpayment penalty even if you pay in full when you file your 2025 tax return in April, 2026.

topic Roth Conversion Question in Retirement tax questions

Roth Conversion Question

Re: Roth Conversion Question