- Joined
- Nov 27, 2014
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- 9,318
This is a very real thing out there that I have gotten such a varied amount of opinions from so called professionals. Here was my question to them:
"I am going to do a Roth Conversion of $25,000 which still keeps me in the 12% tax bracket.......when do I pay the tax?"
Pretty straight forward.........but several CFP's, you tubers and Fidelity all said to wait till you do your taxes in Feb and then you just pay it then.
But yet when you look it up on the IRS web site it says just like the quote above.
Very confusing.............so I did the conversion last week and we will see. I will post the result in Feb.
This might be bad advice. Before the end of the year, you should have a handle on your taxes. You should either know that you’re covered under the hold harmless rules or you should make an estimate of your tax liability and make either estimated payments or withholdings to cover the liability. Otherwise, you risk paying interest and penalty when you file your taxes.
Maybe your advisor is certain that you are covered by the hold harmless provisions. In that case, the advice to wait until you do your taxes is correct.