If you're trying to pay a large amount up front, you don't have to stop at prepaying in Q1 for all of 2024. You could deliberately overpay for the year with your first payment and perhaps even get more Roth conversion space. Any overpayments could get carried over to the 2025 tax year instead of your getting a refund.Yes, but doing it shortly after 1/15 will reduce my taxable interest income by approx $600 for 2024. I can convert that $600 to Roth from pre-tax. I'm playing my AGI right up to 105K for 2026 IRMAA. Hence I'm squeezing out as much Roth conversion as I can.I can see the advantage of paying tax from your after-tax account vs. withholding from the conversion itself, but couldn't you be getting the 5.29% in your Roth on the full amount of the conversion, plus 5% or whatever your taxable pays for however much time until you actually owed the tax?Reason being I will use an after-tax account to pay the estimated tax vs. the 401K Rollover IRA (pre-tax) which will free up more $$ for Roth conversion from the aforementioned 401K Rollover IRA (pre-tax) because I won't be doing the withholding in it. My Roth is getting 5.29% so I'm not losing anything, I'm gaining because My taxable interest is lower (and moving it to non-taxable Roth).What's the advantage, given that you won't earn any interest on the amounts you pay earlier than necessary?
Statistics: Posted by JayB — Tue Jan 09, 2024 5:03 am — Replies 17 — Views 996