Search found 6 matches

by Railfan
Fri Sep 15, 2017 10:17 am
Forum: Personal Finance (Not Investing)
Topic: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?
Replies: 19
Views: 1754

Re: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?

After reading the responses to my question, looking over the forms mentioned and reassessing how my monthly income stream would be affected, perhaps increasing the withholding from my monthly pension check, while crimping my cash flow somewhat, might not be as impractical as I first thought (I mean,...
by Railfan
Thu Sep 14, 2017 10:49 am
Forum: Personal Finance (Not Investing)
Topic: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?
Replies: 19
Views: 1754

Re: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?

The Wizard said:
pay more tax in the first three to six months of the year than the last six months
That sounds like good advice. I'll do that. Probably explains why I had a (miniscule) penalty last year - did a conversion late in December and the tax payment for it in early January.
by Railfan
Thu Sep 14, 2017 8:38 am
Forum: Personal Finance (Not Investing)
Topic: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?
Replies: 19
Views: 1754

Re: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?

The Wizard said: Modify your withholding for a pay period or two instead. I'm retired, and taking the amount of withholding I'd need wouldn't be practical. The big problem is I should have started doing the conversions the minute I retired. Now I'm looking at a fairly substantial RMD (I know, I kno...
by Railfan
Thu Sep 14, 2017 8:14 am
Forum: Personal Finance (Not Investing)
Topic: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?
Replies: 19
Views: 1754

Re: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?

FIREchief asked: Why not do the entire annual conversion in January and then pay the additional taxes in four equal estimated tax installments in accordance with the IRS quarterly deadlines? To go into just a little more detail, I don't really mean for it to sound like it's all unplanned and haphaz...
by Railfan
Wed Sep 13, 2017 11:19 pm
Forum: Personal Finance (Not Investing)
Topic: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?
Replies: 19
Views: 1754

Re: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?

FiveK wrote:
It may require you to use the more complex parts of Form 2210 to avoid penalties
Why would I be liable for penalties if I pay the tax within days of the conversion? Complex forms are what I was hoping to avoid. :annoyed
by Railfan
Wed Sep 13, 2017 7:48 pm
Forum: Personal Finance (Not Investing)
Topic: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?
Replies: 19
Views: 1754

Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?

I will be converting some or all of my traditional IRA to my Roth over the next couple of years. The conversions will likely be done multiple times a year on an irregular basis, and perhaps in differing amounts, and so it would be difficult to know in advance how much to pay in regular quarterly est...