Question for the Money Doctors

Question submitted on May 11, 2021.

Question

I am thinking to convert standard IRA fund into ROTH IRA. next five years. ( 50K every year. )

my question: Do I have to pay IRS tax right away when I convert ROTH IRA or I can pay at the time of when I file IRS return for year 2021 in year April 2022 ?

Awanish Parikh



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Answer

Hi Awanish, I recommend that you "pay as you go" to avoid late payment penalties.  With limited exceptions, is an IRS requirement to pay your taxes in the same quarter as when the taxable income is earned.  If you need more info than that, I suggest you find a CPA/PFS by clicking this link.

For additional information visit //www.360financialliteracy.org/