Because the distribution will be occurring in Q4, to avoid the potential need to annualize income on Schedule AI (Form 2210) it would be better to have taxes withheld from the distribution rather than making an estimated tax payment.
If the distribution occurs after TurboTax releases 2024 TurboTax, you can use TurboTax to prepare a tax return based on estimated entries. The CD/download version of TurboTax is usually best for doing this because it gives visibility into the calculations and is normally released in mid-November. The online version is usually released in early December. Although that some cost-of-living values in the initial releases might not be updated for 2024 until later updates, those updates don't usually change the calculated tax liability by much.
