Retirement tax questions

You are always required to pay estimated taxes.  The tax system is pay-as-you-go, and the requirement is always part of the system.  However, you won't be assessed a penalty for underpayment if you meet one of the safe harbors.  (In other words, its a rule, but there is no penalty for breaking it if you are careful.)

 

Be aware that, with your significantly larger income, your payment threshold is likely 110% of last years tax liability, not 90% or 100%.  Your total payments into the system (from withholding or estimated payments) must be at least 110% of your 2021 tax liability.  Your tax liability is on line 24 of your 2021 tax return.  It is the amount of tax you paid to the IRS, not necessarily the amount of your refund or additional payment in 2021.  (For example, if you paid $5000 in withholding, and owed a further $500 when you filed your return, your liability for 2021 was $5500, not $500.)