When To Pay Roth Conversion Taxes

You're doing a conversion, you're anticipating the taxable income. When do you actually have to pay? Well, generally taxes on Roth conversions are due by the regular tax filing deadline for that year, typically April 15 to the following year. But if the conversion significantly increases your taxable income, you may need to pay throughout the year to avoid underpayment penalties. This is where quarterly estimated taxes come in. Estimated payments are typically due April 15, June 15, September 15 and January 15 of the following year. And there's something called the safe harbor rule. In plain English, safe harbor is the IRS telling you if you pay enough along the way, we won't penalize you. For high income folks, that safe harbor amount means paying 110% of your prior year tax liability. The point is this. You you can pay the full tax by April 15th and still get penalized if you didn't pay enough during the year. So don't wing this.