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Roth Conversion Mandatory State Withholding

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  • Roth Conversion Mandatory State Withholding

    I just did a 401k to Roth conversion and did not realize that there was a mandatory state withholding in certain states even if you don't withhold any federal amount so unfortunately a portion of the conversion was withheld for state tax.

    I think the withheld amount will also be subject to a 10% early withdrawal penalty since I'm under 59 1/2. Does anyone know if it's possible for me to contribute the amount that was withheld out of my own funds to my Roth IRA (and count it as a kind of roll over) to avoid the early withdrawal penalty?