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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77389  
Subject: Re: ROLLOVER IRA TO ROTH IRA Date: 10/6/2000 11:44 AM
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Greetings, Saw1, and welcome. You asked:

<<I fall well within the $100,000 AGI to qualify to convert, but I want to understand the tax rate that I will see. I'm assuming that the amount I will be taxed will be based upon my AGI. But, do I have to pay the tax right away or can I put off paying the taxes until tax filing time when I'm filling out my return ?>>

You may have to file and pay estimated quarterly withholding of income taxes based on the amount of the conversion in that quarter. Unless you meet one of the safe harbor provisions for not doing so, then a failure to have enough withholding results in a penalty at income tax filing time. You should run a pro forma income tax return to see if making a withholding payment is called for in your particular set of circumstances.

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