Wjm2222
New Member

1099-r and estimated tax results in penalty

I took a distribution from my retirement savings, had Schwab withhold an amount equal to my estimated tax, and skipped making the estimate payment for that quarter. This resulted in a penalty for underpayment even though the 1099-r plus estimated payments were sufficient and I had a refund coming. What was the correct way to do this? It seems that I should not have Schwab withhold.