Estimated Taxes for Roth Conversion

[dee-zo]

How do I determine the estimated taxes if I do a large Roth conversion in December (end of the tax year)?  Do I pay in FULL the approx. tax based upon my tax bracket?  Does the IRS need to know that the conversion took place at the end of the year rather than the begining of the tax year?

Thank you

[AmyC]

You want to owe less than $1,000 at tax time so you will want to make an estimated payment. Each brokerage sends the IRS the IRA balances on December 31 so the IRS already knows which year you moved money from one place to another. The brokerage includes the account numbers for the IRS as well.

Here are some things to help:

• IRS W4 planner  
• Intuit Tax Planner and Analyzer
• TurboTax Bracket Calculator.