Do I have to deduct taxes for a significant IRA distribution when I withdraw or can I wait until I file my taxes?

bobclay49 — Wed, 05 Jun 2019 03:27:28 GMT

will I be penalized for not paying the taxes on an IRA distribution at time of withdrawal as opposed to waiting until I file my taxes?

Taxes are considered to be "pay as you go". You do not ha...

Coleen3 — Wed, 05 Jun 2019 03:27:30 GMT

Taxes are considered to be "pay as you go". You do not have to withhold the money but the IRS does not want you to pay the following year either. You can make an estimated payment, but it is much easier to withhold the money.

If you didn't pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and estimated tax payments, or if they paid at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.

topic Do I have to deduct taxes for a significant IRA distribution when I withdraw or can I wait until I file my taxes? in Retirement tax questions

Do I have to deduct taxes for a significant IRA distribution when I withdraw or can I wait until I file my taxes?

Taxes are considered to be "pay as you go". You do not ha...