Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
Here you have the option of their taking the taxes from the amount you are converting and putting the $5K-taxes into the Roth, or paying taxes from another account, (either in an estimated tax payment to avoid penalties of late payment or directly to the IRS in your return if penalty not an issue,) which allows the full $5k to be converted into the Roth for tax free accumulation.

A third possibility for taxes as mentioned in another post is withholding the entire amount of taxes for the full $15K from the RMD. That would be really great if your brokerage would do that.

IP
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.