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Level 1
posted Oct 25, 2023 3:42:02 PM

After converting traditional IRA to Roth IRA and selecting 0 dollar tax withheld, how and when to pay tax using saving's money to avoid penalty at tax filing season?

After converting traditional IRA to Roth IRA and selecting 0 dollar tax withheld, how and when to pay tax using saving's money to avoid penalty at tax filing season?

0 1 457
1 Replies
Employee Tax Expert
Oct 25, 2023 3:56:45 PM

I recommend calculating the estimated taxes based on your last year's marginal tax rate (highest tax rate calculated) and making the estimated tax payment via IRS Direct Pay: https://www.irs.gov/payments/direct-pay

 

Depending on your state, you may or may not want to make a state estimated tax payment.