I inherited a 401k in 2017 and it was paid out in 2022 due to the 5 year rule. I know I can pay the federal tax when I do my taxes in 2023 because 20% federal tax was withheld from the 401k distribution which would be well in excess of 110% of my 2021 federal tax.
The question I have is nothing was withheld for state, so do I have to pay that estimated amount I would owe the state now or can that just be paid when I do my taxes next year? This would be for NJ. Basically, I am hoping to hold on to the money and earn some interest on it until the time comes to pay, if possible.
Thanks
