Converting traditional IRA to ROTH IRA

  1. profile image49
    ecugrad92posted 7 years ago

    Converting traditional IRA to ROTH IRA

    I converted my entire traditional IRA to my ROTH IRA in December 2010 and spread the tax bill over 2011 and 2012. Do I have to indicate this on my 2010 tax return and also how does one put aside money for the tax bill? Should I ask my employer to take more taxes out each month or can I invest the money somewhere to avoid the tax bill or at least reduce it some?

  2. srpatterson profile image43
    srpattersonposted 7 years ago

    I can answer the second portion of your question. You should pay estimated tax payments during the tax year to offset the new tax burden that you anticipate when you file for 2011. If you have not paid enough during the tax year itself, you can be subject to penalties.