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Yes, correct. The 1099R remains unchanged regardless of what is done by the taxpayer. This is a distribution with the taxpayer option to complete a 60 day rollover despite the fact that the 1k was sent to the IRS. For a distribution late in the year, the 60 day period could result in the rollover contribution being made in the following year. But the 1040 will remain the same, reporting a rollover which eliminates any impact on the taxable income, but the withholding has been increased by 1k.
Doing this could avoid any underpayment penalty since withholding is credited as if paid throughout the tax year, unlike quarterlies.
The rollover could also be completed by making the contribution to a Roth IRA, and withholding would still be increased, but so would taxable income however no exposure to the one rollover limitation.