Estimated Taxes
When you convert from a Traditional IRA to a Roth IRA, do you have to recalulate estimated taxes for the year of conversion? Bob Wolff
When you convert from a Traditional IRA to a Roth IRA, do you have to recalulate estimated taxes for the year of conversion? Bob Wolff
Permalink Submitted by Alan Spross on Tue, 2009-11-24 20:34
Yes. You can meet one of the safe harbors based on the prior year’s tax liability. This will become more complex with the deferred income options for 2010 conversions. At least the current underpayment rate is only 4% if you come up short.