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Do I have to make quarterly tax payments when performing a Roth conversion?

Do I have to make quarterly tax payments when performing a Roth conversion?

IRAs, Taxes
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January 2019

This will depend on your individual circumstances. If the Roth conversion puts you into a tax liability position (what you owe the government exceeds what you have paid in for this year), then you might need to make a quarterly payment. If the conversion income keeps you in a refund position, you wouldn't need ot make a payment. 

So whether you need to make a quarterly payment depends on how much you've already paid into the government this year based on withholdings, prior year refunds carried forward, and other payments made for the tax year that your Roth conversion affects. 

Also, there is way to be "safe harbored" so that you don't have to worry about quarterly payments. For the federal government, you are safe harbored if you have paid in 100% of your prior year tax, or 90% of your current year actual tax. 

In short, talk to a CPA!

January 2019
January 2019
January 2019
January 2019