401k Roth Conversion
Hi Terry – I manage my own investments and do my own taxes and find you extremely valuable. I just performed a Roth conversion in my 401K on 12/28/22 for 2022 and am now thinking about the tax due. I was going to mail a check to the IRS using the Estimated Tax form, but the one online at the IRS is currently only for 2023. I don’t want to get a penalty — what do you recommend doing?
Terry Says
Did you ask your custodian to withhold taxes? You should have. But it is my understanding that you can make your 4th quarter tax payment by January 14th and still be in compliance. Here’s a link to that IRS 4Q 1040-ES:
https://www.irs.gov/pub/irs-prior/f1040es–2022.pdf
And if you’re already on Medicare, you might find out that your Part B and D premiums rose because of this extra income from the conversion.
