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Old 07-24-2020, 07:13 PM   #41
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We do have withholding from our pension and usually get a small tax refund. I moved $75 K from our IRA into a newly established Roth IRA with Fidelity. The advisor at Fidelity offered me the choice of having tax withholding out of the transfer or pay it in 2021. This thread has me a little worried!
It sounds like there may be just cause to worry.

If you plug your full year 2020 estimated numbers in to this tax calculator, how much will you owe? I suspect that you should either do an estimated payment or an additional tIRA withdrawal with 100% withholding (if you are over 59 1/2).

https://www.dinkytown.net/java/1040-tax-calculator.html
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Old 07-26-2020, 01:08 PM   #42
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Originally Posted by pb4uski View Post
I suspect that you should either do an estimated payment or an additional tIRA withdrawal with 100% withholding (if you are over 59 1/2).

https://www.dinkytown.net/java/1040-tax-calculator.html

Maybe an obvious question for folks here... How do you do an estimated payment? I have never done estimated taxes where you pay quarterly. I did a Roth conversion last year (first full year of retirement) and ended up under withheld so I had a small penalty. I'd like to avoid that this year. It wasn't much of a penalty, but it caused me to do a whole bunch of googling to figure out how I screwed up.
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Old 07-26-2020, 01:11 PM   #43
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Maybe an obvious question for folks here... How do you do an estimated payment? I have never done estimated taxes where you pay quarterly. I did a Roth conversion last year (first full year of retirement) and ended up under withheld so I had a small penalty. I'd like to avoid that this year. It wasn't much of a penalty, but it caused me to do a whole bunch of googling to figure out how I screwed up.
Start at https://www.eftps.gov/eftps/ to enroll, and you also set up your payments there. It's been so long that I don't remember the steps but my memory is that it was easy.

Do a search for your state if you pay state taxes.
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Old 07-26-2020, 01:14 PM   #44
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^^^ easiest way, or you can mail them a check with an estimated payment voucher.... actually if you sent them a check with your SS# ine memo field it would probably work but I try to limit where my SS# is out there.
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Old 07-26-2020, 01:16 PM   #45
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You can also do a one-time payment without enrolling here: https://directpay.irs.gov/directpay/...execution=e2s1
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Old 07-26-2020, 01:22 PM   #46
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Start at https://www.eftps.gov/eftps/ to enroll, and you also set up your payments there. It's been so long that I don't remember the steps but my memory is that it was easy.

Do a search for your state if you pay state taxes.
JohnML: Once you enroll you will need to wait for a letter with your access info. Then you can easily set up the payments.

In my state (MO) the on-line system is cumbersome, and you can't set up future payments, so I just mail a check.
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Old 07-26-2020, 01:26 PM   #47
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One thing I really like about EFTPS that the others may or may not have, is a record of your payments in one place. At tax time, or any other time throughout the year, I can verify all of the payments I've made, and also that the IRS has properly credited them to me.
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