I am considering taking an early distribution on one of my IRA accounts. I understand it will be taxed at my normal tax rate, and there will be a 10% penalty. However, in the process of withdrawing the money from Fidelity, it says “You may be responsible for estimated tax payments and could incur penalties if your estimated tax payments are not sufficient.” My question is, if I make the withdrawal in January, do I have until April 15th of the following year to clear up the taxes with the IRS?
Or, does that quote that I copied above imply that there could be *additional* taxes/penalties to pay if I don’t have Fidelity withhold the funds up front and/or I don’t make an immediate payment (not even sure how that would work) to the IRS?
basically, do I have all of my withdrawals for over a year before I simply need to clear up the taxes (at my standard income tax rate) and the 10% penalty?
