By disaster, I meant that I did not intend to take ALL of this money in one year. I planned to withdraw over at least two or three years to spread out the tax liability, but I was given wrong information by a Fidelity Rep and now I am forced to take it all in one year, while the account is also down 20%+ from the market this year.
I am not concerned with spending or losing the money. I just want to make sure if I wait to pay the tax when I file next year, that I won't be charged any penalty by the IRS for not withholding enough during the tax year. If that makes sense?
