- quote -

As long as you meet any of the exceptions to the
Underestimated penalty, you can defer paying the tax until
April 2005.

Ira Smilovitz

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Ira S. wrote:

- quote -

OK, thanks. How about this scenario: I make sure that all
my est. tax payments in 2004 are equal to 100% of my total
tax liability for 2003. Then I can make a conversion
anytime in 2004 without having to worry about its value or
adjusting my est. tax payments. Does that sound right? (I
assume that the conversion amount does not count toward the
AGI income limit.) Thanks.

GS

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

GarySport wrote:

- quote -

Let's see now, year 2003 has been over for 16 days. And you
say you're doing this conversion between now and April?

Okay, that means it pertains to year 2004, and 2003 has
nothing to do with it.

Cheer$,
Harlan Lunsford, EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

GarySport posted:

- quote -

Any conversion of a traditional IRA into a Roth IRA which
you make in 2004 will *not* affect your 2003 taxes. It will
be a 2004 event, and will affect your 2004 taxes.

Conversions are always taxed in the year they occur, as
opposed to "contributions" to a an IRA, which may be made
until the due date of your return for any given year.

There are also income limits (modified AGI not more than
$100,000).

Bill

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"GarySport" <garysport[at]aol.comjknnot> wrote:

- quote -

A conversion after 12/31/03 is a 2004 transaction. You
should adjust your 2004 estimates accordingly.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

If you convert now, it is a 2004 event. Adjust your tax year
2004 estimates in anticipation of the tax that will be due
in April 2005.

Ira Smilovitz

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

garysport[at]aol.comjknnot (GarySport) writes:

- quote -

You're confused. You can make a 2003 CONTRIBUTION through
April 15, but a 2003 conversion had to be done by
12/31/2003. Any conversion you do now will be 2004 income,
and you can deal with the estimated tax payments timely.

Phil Marti
Topeka, KS

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

If I convert a traditional IRA into a Roth IRA between now
and April, I understand I have to pay the tax on the amount
converted. However, the quarterly tax payments I've paid
for 2003 did not take that into account, since I didn't know
in advance that I might make a conversion in these last few
weeks. Will I be penalized for my estimated tax payments
being too low, and should I make an extra estimated tax
payment as soon as I convert the IRA to stop the clock on
further penalty? Thanks for info.

GS

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->