If you withdraw a lump sum from your IRA (or have any other large lump sum of income) during the first 3 months of the year, you can either:
a. pay the estimated taxes in full on or before April 15, 2024.
b. pay 1/4 of the estimated taxes before April 15, 1/4 before June 15, 1/4 before September 15, and the last quarter before January 15, 2025.
It is not sufficient to pay 4 x 25% of the tax on your distribution
Your estimated tax + withholding has to cover 90% of your entire 2024 tax. or all your prior years tax.
What is your 2023 tax ?
If your estimated tax + withholding in each period is 25 % of that amount( x 1.10 if your agi is over 150,000),
you can avoid an underpayment of estimated tax penalty for 2024.
This is the prior year's tax rule for estimated tax.
Your prior year's tax should be known by tax day April 15, which is the deadline for the first 2024 Estimated Tax payment.