The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Lack of AMT patch by early Jan||Date: 12/29/2012 5:01 PM|
|Author: TMFPMarti||Number: 117238 of 121565|
During this last week, we converted a portion of a traditional IRA to a Roth IRA. This conversion causes us to owe taxes. However, since this happened in the 4th quarter of 2012, if I pay the additional taxes by 15 January, I continue to be current?
Maybe. Maybe you don't have to pay anything in advance to avoid a penalty. Maybe you have to file an annualized income statement with your return to avoid a penalty.
Rather than rewrite the book on how to avoid the ES penalty (there are multiple ways), I'll just refer all to Pub 505.
Rule Your Retirement Home Fool
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|