Using IRAs To Reduce Estimated Tax Penalties

Did you receive a windfall late in the year and then get penalized for not paying estimated taxes on it earlier? It doesn't seem fair, but the IRS might levy a penalty for that. There is a way to fix it - and similarly for RMDs you might take out in December too.

That's the main focus on today's Retirement Headline - and it fits in nicely with our Listener Question as well.

Resources:

• Article by Jeff Levine on the Nerd's Eye View Blog: Using Retirement Accounts To Reduce Estimated Tax Penalties Via Tax Withholding From (Required Minimum) Distributions
• IRS form 2210: Underpayment of Estimated Tax by Individuals, Estates, and Trusts

 

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