@jcreynolds183 wrote:
Thank you very much; this is helpful!
A question for clarification…
In the event that in 2023 I pay via weekly paycheck withholding as much (or more) income tax as I did in 2022, does that satisfy requirement “C” and mean that I will not need to deal with the estimated payment on April 15, nor worry about underpayment penalties? Or is that 100% of last year’s taxes figure something that’s paid *in addition to* my weekly paycheck withholdings?
Just trying to make sure I’m understanding that properly.
If your income including the withdrawal will be more than $150,000, then you need to pay into the system an amount equal to 110% of your 2022 taxes, not just 100% of your 2022 taxes.
If you can accomplish that via withholding alone, you should avoid the underpayment penalty without having to make a separate estimated payment.
