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AAAHHHHHH! By converting my 401k (75k) to an IRA and then to a Roth before end of 1998, I will be spreading out my taxes ($18750 added to my AGI each year). Since I obviously didn't know at the beginning of 1998 that I would be converting and my normal deductions didn't take into account the conversion, I now owe a lot more. ok so far. Since I increased my deductions this year to minimize my usual overpayment to Uncle Sam and subsequent huge (~2k) "refund", I have had less taxes taken out this year. I have heard that to avoid a penalty, either I must have had at least the same amount or higher taxes taken out in 1997 (not the case) or I must make an estimated tax payment before Jan. 15 to within $1000. of my final tax bill for not having enough taken out" for 1998. Is this correct?
Thanks for the help.
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