So, basic plan (and obvious reasons):
1. 1/1/25: Full amount (to fill up 22% bracket) 110K converted, no withholding.
2. 8/15/25: Full wage withholding for last 10 (bi) paychecks.
My research indicates part 2 (WH) is 'deemed' 'annualized', or looked at as though even throughout the year.
(Thus 25% by quarter. etc...)
Do I need to worry about part 1 (the convo)?
Do I need to do this in quarters to 'even out' the 'extra income'?
Does the 'income' timing get ignored as long as the tax payment timing 'is good'?
THX!
1. 1/1/25: Full amount (to fill up 22% bracket) 110K converted, no withholding.
2. 8/15/25: Full wage withholding for last 10 (bi) paychecks.
My research indicates part 2 (WH) is 'deemed' 'annualized', or looked at as though even throughout the year.
(Thus 25% by quarter. etc...)
Do I need to worry about part 1 (the convo)?
Do I need to do this in quarters to 'even out' the 'extra income'?
Does the 'income' timing get ignored as long as the tax payment timing 'is good'?
THX!
Statistics: Posted by tshephard — Sat Dec 21, 2024 8:09 am — Replies 5 — Views 159