Estimated Taxes for a Traditional IRA Withdrawal I plan to make in Q4, 2024 with Federal taxes being withheld at source.

cippy1025 — Wed, 11 Feb 2026 03:38:01 GMT

I am 62 and live in Illinois. I plan to make a withdrawal from my Traditional IRA in December of 2024. I will be asking Fidelity to withhold 24% in Federal Taxes (& Illinois State Tax for 5% if they do it).

Am I required to pay any estimated Federal/State Taxes Quarterly starting in Q1, 2024 ? Logic would state that since I receiving the proceeds in December 2024 and Taxes and being held at Source in the same Month, that I should be NOT be paying Estimated Taxes during the Year 2024.

The reason I ask this Question is because the IRS assessed me a small penalty for a 2022 tax Year Situation. I had converted $50,000 of 401K to a ROTH IRA on June 30, 2022 with no Taxes withheld. I went to the IRS Payment site and made a $12,500 Estimated Tax Payment on July 5th, 2022. I though I did everything correctly. However, when I filed my Taxes they deducted a $150 "penalty" from my Refund due because they stated that I had NOT made estimated Taxes in every Quarter. When I called the IRS phone number, I was given a round about answer that since the IRS did not know when the ROTH conversion took place in 2022, I should have made estimated Tax Payments. They said I should have filed some Form (??) that shows my 2022 Income every Quarter. When I saw the form and the information required, I decided to write a simple letter explaining the situation to the IRS. Have not heard back yet. I had an EA prepare my Tax Returns for 2022 and I am not sure if the EA should have filled out that Form that the IRS individual referred to.

TIA

Re: Estimated Taxes for a Traditional IRA Withdrawal I plan to make in Q4, 2024 with Federal taxe...

JohnB5677 — Tue, 13 Feb 2024 19:07:09 GMT

No, Unless there are other factors, you will not have to pay estimated taxes in 2024.

In the case you referred to from 2022. There was no direct link between the rollover withdrawal and the tax payment.

In your current situation you will have both the withdrawal and the tax withholding reported on the same document (the 1099-R).

Re: Estimated Taxes for a Traditional IRA Withdrawal I plan to make in Q4, 2024 with Federal taxe...

JohnB5677 — Tue, 13 Feb 2024 19:07:39 GMT

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topic Estimated Taxes for a Traditional IRA Withdrawal I plan to make in Q4, 2024 with Federal taxes being withheld at source. in Retirement tax questions

Estimated Taxes for a Traditional IRA Withdrawal I plan to make in Q4, 2024 with Federal taxes being withheld at source.

Re: Estimated Taxes for a Traditional IRA Withdrawal I plan to make in Q4, 2024 with Federal taxe...

Re: Estimated Taxes for a Traditional IRA Withdrawal I plan to make in Q4, 2024 with Federal taxe...