Quarterly estimated tax payments are a common source of frustration, and missing one brings an underpayment penalty along with the tax owed. Craig at Sage Rutty explains a workaround: the IRS treats withholding taken from a qualified account like an IRA as spread evenly across the entire year, regardless of when it is actually withheld. A single IRA distribution with full withholding, even taken as late as December 31st, can retroactively cover all four quarters and eliminate the underpayment penalty.
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