dmertz
Level 15

Retirement tax questions

With uneven income, you can perform the arduous task of reporting on Form 2210 annualized income, deductions and taxes paid.  If your distribution was in the first quarter of the year, this could actually *increase* the penalty rather than decrease the penalty.  If it's practical for you to have withholding taken or to pay estimated tax payments, it's best to avoid needing to annualize.