HSA distribution once in a lifetime. Change quarterly payments

[pmnealxx1]

I retired in 2013.  In 2016 I needed to either contribute to the HSA or close the account.  I choose to close the account and transfer the money to Wells Fargo Advisor.  I understand that I owe taxes on this money.  This is a one time transaction and will never happen again.  My question is that my quarterly est. payments are very high.  Can I change them or is there a penalty?

[BMcCalpin · Accepted solution]

So you are saying that the estimated tax vouchers (1040-ES) that TurboTax printed for you as part of your 2016 return seem high because of that one-time event that won't repeated in 2017?

TurboTax is doing the 1040-ES vouchers based on 2016 as a courtesy for you. But, as you suspect, you don't need to pay estimated taxes based on a one-time event.

You have every eight to change the numbers on the 1040-ES to what will suit your 2017 return, or even go to the IRS website and print off your own copies of the 1040-ES and write in your own amounts.

You are not bound by the numbers TurboTax prints on the 1040-ES. They were just "estimates".