@fanfare wrote:
"instead withholding my expected tax burden from the year-end IRA distribution. "
That's exactly what I suggested above.
Withholding at least 90% of your tax burden will eliminate any penalty. (the current year rule).
So you are suggesting that it's NOT necessary to make quarterly payments as long as I withhold 90% of my year's tax from the year-end IRA distribution? Is this any different in the IRS's eyes than sending in an estimated tax payment for 90% of the year's tax in the last quarter (even for someone who receives income distributed evenly through the year)? Then why wouldn't everyone avoid the penalty for non-timely withholding payment this way? Or is there something about the scenario I presented that makes it different, such as the fact that IRA distribution was all at year-end -- which @Opus 17 said doesn't eliminate the need for quarterly payments? (Please consider my initial Social Security related question in the response.) Thanks!
