Using Indirect 60 day Rollover to have withholding instead of estimated taxes
I read where someone missed a 10k estimated tax payment. Do you see anything wrong with this solution to avoid 2210 penalty:
- Do a 10k distribution from an IRA but with 100% Federal withholding.
- Within 60 days put back in the IRA 10k.
Permalink Submitted by Alan - IRA critic on Sat, 2024-06-22 20:31
It would work, but 99% is the highest withholding % that many IRA custodians offer, and use of the 60 day rollover will use up the one rollover allowed for a 12 month period. And of course, the taxpayer must have a rollover available to be able to replace the withheld amount.