The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/dr-c-writes-ltltim-assuming-that-if-i-11766958.aspx

Subject:  Re: Can U Convert < 100% of TradIRA to a Roth Date:  1/7/2000  9:41 AM
Author:  TMFPixy Number:  17478 of 76384

Dr. C writes:

<<I'm assuming that if I convert say in, March of this year, I don't actually have to pay the tax burden till April 15 of 2001. I'm correct right ? (I hope so)>>

No, not quite. That's when your income tax return is normally due. However, you are responsible for proper withholding of those taxes throughout the year. Therefore, you must have filed estimated withholding for anticipated taxes for the quarter in which the conversion took place. If you don't, then when you file on April 15 you may owe a penalty for not withholding enough estimated taxes for the year. Do not wait until April 15, 2001, to pay the final bill. Make the estimated payment now.

Regards..Pixy
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us