I'd like to avoid any unnecessary IRS charges for not paying the taxes when they are due. I'm expecting to do this in November or December
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.
@Ftgarland - the question is really "what is your tax bracket"? take that percentage times the withdrawal.
the charts are AFTER your standard / itemized deductions:
https://www.nerdwallet.com/article/taxes/federal-income-tax-brackets
just make the payment by January 15, 2025 - and don't forget state taxes (if applicable)
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.
@dmertz this is available now to determine 2024 tax liability. I have found it to be quite accurate.
Agree with @dmertz . Whatever amount you determine you need to pay should be withheld by the plan using their normal procedure for tax withholding. (Same with state income taxes.) If you take the entire amount in cash, and then make an estimated payment to the IRS later, you could be subject to a penalty for underpaying your taxes unless you file a special extra form with your tax return.
(If you do decide to take the entire amount and pay later, the deadline for paying estimated taxes on income paid between September 1 and December 31 is January 15, 2025.)