Hi,
I am planning to have a traditional IRA to Roth conversion. Can I start withholding extra tax at my payroll so that I dont have to pay estimated tax?
For example if I convert $50K traditional. Will I get $50K in Roth and I pay taxes by payroll withholding. My employer allows me to withheld additional taxes.
thanks
That would be possible.
However, it might be easier to have the tax *withheld* from the conversion itself, and not need to deal with your employer/payroll. Do it all in the same transaction.
Just make *sure* that you have the chance to specify tax withholding and to specify the amount you want to withhold before you "submit" (or otherwise finalize) the transaction.
This is how we pay most of our taxes, when we remove money from tax-deferred accounts, for any reason.
"Withholding" of any type is always "timely". It doesn't need to be from payroll, although that does work too, of course.
RM
Statistics: Posted by ResearchMed — Sat Apr 27, 2024 8:17 pm — Replies 5 — Views 336