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Personal Finance and Investing

Susan Calvin

(2,149 posts)

35. I don't think that's going to be a problem in my particular case, but

Reply to nmmi (Reply #34)

Sat Nov 30, 2024, 09:54 AM

Nov 30

Once again I learned something. I had no idea there was such a thing as a 1040-SR. If my tax software doesn't offer it to me, I don't know it exists. Of course, I only use the tax software because I'm too lazy to do the arithmetic myself. It's not really needed for the extremely low complexity level of my returns.

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Roth IRA conversion tax reporting. I am so confused! [View all] Susan Calvin Nov 29 OP

"The question is not whether that makes financial sense." mahatmakanejeeves Nov 29 #1

Thanks. Susan Calvin Nov 29 #2

Capital gains is a non-issue with IRAs. One is taxed on the value of the IRA at the time of withdrawal or conversion nmmi Nov 29 #15

Thank you. Susan Calvin Nov 29 #16

You're welcome. And I am so relieved you are considering doing small conversion amounts at a time nmmi Nov 29 #18

You are so nice to be relieved on my account. Thank you. Susan Calvin Nov 29 #19

I do a small rollover like this every year Shermann Nov 29 #3

Thanks. Susan Calvin Nov 29 #4

Form 1040-ES Estimated Tax for Individuals mahatmakanejeeves Nov 29 #5

Oh thank you! Susan Calvin Nov 29 #6

You should get your November monthly statement from whoever runs your IRA in a few days. mahatmakanejeeves Nov 29 #7

Oh great, one more thing to deal with. Susan Calvin Nov 29 #8

She will have no capital gains to separate out kansasobama Nov 29 #28

You don't have to wait to Jan 15. We pay the last estimated around the middle of December question everything Nov 29 #14

I think yours is the best advice I have received, Susan Calvin Nov 29 #12

I don't know your age. But I converted part of my IRA to a Roth at 64 one year before doc03 Nov 29 #9

I hadn't thought about that. Susan Calvin Nov 29 #10

Oh ouch. Susan Calvin Nov 29 #11

Are both the traditional and Roth with the same custodian? No forms are needed question everything Nov 29 #13

They are. It was only the estimated taxes I was concerned about. Susan Calvin Nov 29 #17

Also, depending on the amount you may be subjected to Alternative Minimum tax. question everything Nov 29 #20

Oh it's nowhere near enough for that. Susan Calvin Nov 29 #21

You might consider NOT doing any Roth conversions -- nmmi Nov 29 #22

Thank you for all the detailed advice. Susan Calvin Nov 29 #23

Interesting - 20 years is my base case default assumption on longevity in my spreadsheet nmmi Nov 29 #24

Oh I'm sure it's not too intuitive. Susan Calvin Nov 29 #25

If you can, spread it out until 2032 kansasobama Nov 29 #26

I'm not worried. I don't think I ever said or implied that I was. Susan Calvin Nov 29 #31

Penalty is minimal even if you do not pay estimated taxes on time kansasobama Nov 30 #37

Another sugestion when you convert from a IRA to the Roth if you have enough doc03 Nov 29 #27

Good advice although kansasobama Nov 29 #29

Absolutely. One advice that I keep reading consistently, is to never pay taxes from an IRA account, always pay the nmmi Nov 29 #30

I'm glad I asked the question, as long as y'all didn't mind replying. Susan Calvin Nov 29 #33

And then there is the NOT-simple matter about how much estimated tax to pay nmmi Nov 30 #34

I don't think that's going to be a problem in my particular case, but Susan Calvin Nov 30 #35

I use TurboTax to do my taxes and file online. Then when I get it right I print my tax return to have a permanent nmmi Nov 30 #36

Yes, that was my plan. Susan Calvin Nov 29 #32