Hi. I'm 67 years old, married (wife is 68), retired last year and recently rolled over all of my 401k and IRA's into my traditional IRA account. I have accumulated several million dollars into the account and will begin converting into a Roth IRA for a few years (still undetermined) to maximize my portfolio so that my 2 children can have tax free distributions when my wife and I pass away. I'm obviously looking for a quick, yet most effective tax minimization to the account, including significantly reduced or zero RMD's and reduced or controlled Medicare IRMAA. We are not currently drawing social security but will begin when we turn 70. I have a small pension and my wife has a teacher retirement pension. With social security, pensions, and significant savings, we do not expect to draw on the Roth IRA's and expect to leave our legacy to our kids when we pass away. I'm looking for the best strategy to convert the traditional IRA to a Roth IRA. Also, since I will be converting in the 4th quarter of 2024, I did not send any estimated tax payments to the IRS this year because I do still do not know how much I will convert. If I convert one million dollars, then I expect to pay over $350,000 in taxes. How can I avoid a penalty on the taxes I will owe since I didn't spread the payments throughout the year in four separate payments? How much will the penalty be? I've heard of AI, the Annualized Income Installment Method from the IRS, but I'm confused about how it might apply to me so that I will not have to pay a penalty. I could use anyone's help. Sorry for the long post but I need help and time is running out for 2024
Statistics: Posted by wvumoose — Sat Nov 09, 2024 10:51 pm — Replies 1 — Views 88