Hello. I ended up a couple thousand dollars above the State of Missouri AGI $100,000 threshold for 2022, pulling some of my Social Security benefits into taxable income and dropping the Federal income tax deduction percentage on my Missouri return from 15% to 5%, a double whammy.

On December 16, 2022, I withdrew $10,364 from a Traditional IRA and had $1,710 of it withheld for 2022 Missouri State income tax and $8,654 withheld for 2022 Federal income tax, slightly more than 100% of my 2021 tax liability.

I’m thinking about making a 60-day rollover this month for about $2,000 to drop my 2022 Missouri AGI back down below $100,000. I hate to use up my once-a-year 60-day rollover, but I haven’t used one in many years, ever since they changed the rule, limiting them to once per year, so I should be able to get by without needing another one.

It seems a little odd to have withholding from what turns out to be a 60-rollover, but is there any reason I can’t do this? Next year I’ll try to be more careful.

Thanks in advance for your advice!