This is the first year of my husband's RMD. Two weeks ago we paid our 2024 taxes using his RMD, following the safe harbor rule (110% of 2023 taxes). (The tax payment includes withholding from pensions, salary and SS.)
My question is about paying the taxes on a large Roth conversion we did last week. Ordinarily, I would pay estimated taxes for the conversion. However, I read that if the safe harbor is met from the RMD, there is no penalty for underpayment. Does this sound correct? Is it safe to wait until April to pay the large tax bill?
My question is about paying the taxes on a large Roth conversion we did last week. Ordinarily, I would pay estimated taxes for the conversion. However, I read that if the safe harbor is met from the RMD, there is no penalty for underpayment. Does this sound correct? Is it safe to wait until April to pay the large tax bill?
Statistics: Posted by SweetTooth — Tue Dec 17, 2024 8:44 am — Replies 10 — Views 283