TIRA to Roth Convert

[lbonawitz]

So I converted in Q4, $5,000.00.  I did not pay estimated taxes because I didn't know this would happen.  How does the IRS and states handle this dilemma?

[pmurphy3]

The amount converted to a Roth IRA will be reported as ordinary income.   The amount of Federal and State taxes will be computed at the time of the preparation of the return.

However, I note that you said you did it in the 4th Quarter of the year.   You still have time to make estimated payments.   Generally , the last quarter of the year can be paid by January 15th. 

[lbonawitz]

One must question the state in which one lives.  Not all states look upon the timing as sufficient to just drop an estimate at the end of the year. The Fed does see it in accordance with your point of view, but when it comes to states they can be quite hard nosed.

Thank you for you words of wisdom.