Can I Use Conversion Funds to Pay the Taxes on a Roth Conversion?

I want to do a Roth conversion from my traditional IRA in the amount of $250,000. It’s my understanding that I have to pay the income tax on the $250,000. Can that tax be paid from the funds in the IRA or do I have to pay the tax outside of the IRA? – Kevin This one is straightforward. The IRS doesn’t care where the money comes from. As long as you cut them a check they’ll be happy! All kidding aside – yes, the $250,000 is included in your gross income. You can pay the tax bill using either the converte ...