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Can i make a single estimated tax payment without filling out a form for a Roth Conversion?

Forum|Forum|6 years ago
June 7, 2019
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I am moving all of the funds in a traditional IRA to my Roth IRA via a Roth Conversion. All of the funds in the traditional IRA were before-tax, so I expect to need to pay an estimated quarterly tax payment on the distribution when I do the Roth Conversion. Can I just pay the expected tax payment before the April 15 deadline or do I need to submit the payment with some sort of paperwork as well?

Best answer by dmertz

Form 8606 is always required to report a Roth conversion. Generally this form is included with your tax return for the year in which the distribution from the traditional IRA is made. Unless you have already made the distribution from the traditional IRA before the end of 2017 (after early November), "I am moving all of the funds in a traditional IRA to my Roth IRA via a Roth Conversion" suggests that you will be doing this in 2018, and the 2018 distribution from the traditional IRA and it's conversion to Roth will be reportable on a 2018 Form 8606. If you are not otherwise required to file a tax return, Form 8606 can be filed stand-alone.

To avoid an underpayment penalty, you may also need to make an estimated tax payment for the quarter in which you make the distribution from the traditional IRA. Whether or not you need to make the estimated tax payment will depend on whether or not you will otherwise meet one of the safe harbors for avoiding the underpayment penalty.

https://www.irs.gov/taxtopics/tc306

Instructions for Form 8606: https://www.irs.gov/pub/irs-pdf/i8606.pdf

D

dmertzAnswer

Employee

Form 8606 is always required to report a Roth conversion. Generally this form is included with your tax return for the year in which the distribution from the traditional IRA is made. Unless you have already made the distribution from the traditional IRA before the end of 2017 (after early November), "I am moving all of the funds in a traditional IRA to my Roth IRA via a Roth Conversion" suggests that you will be doing this in 2018, and the 2018 distribution from the traditional IRA and it's conversion to Roth will be reportable on a 2018 Form 8606. If you are not otherwise required to file a tax return, Form 8606 can be filed stand-alone.

To avoid an underpayment penalty, you may also need to make an estimated tax payment for the quarter in which you make the distribution from the traditional IRA. Whether or not you need to make the estimated tax payment will depend on whether or not you will otherwise meet one of the safe harbors for avoiding the underpayment penalty.

https://www.irs.gov/taxtopics/tc306

Instructions for Form 8606: https://www.irs.gov/pub/irs-pdf/i8606.pdf

J

jonnytax9Author

Thanks for the information! So I'll plan to fill out Form 8606 when I complete my 2018 tax return. I do believe I'll need to make that estimated payment before the April deadline. Is there any form associated with this?