Quote:
Originally Posted by thinkxingu
I hope you're well, Joey. Quick question: the only reason to wait until the last minute is purely so you don't have to give up your money, right?
I recently inherited an IRA and, since I'll be taxed on it, I made an estimated tax payment immediately thinking I'd get ahead of it for next year—was that a mistake?
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Thanks. Not too bad laying low and I’ll actually be a permanent NH resident in two weeks. That’s is correct the only reason for waiting is to hang onto your funds as long as possible.
As far as the IRA I wouldn’t call it a mistake at all. It depends on the amount of the distribution. I assume there was no withholding on the distribution? Assuming 2020 is similar to 2019 as far as your income goes there should be no underpayment penalty but I am conservative and since the market is unpredictable these days and saving rates are low I would have recommended an estimated payment especially if the amount was significant.
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