Question regarding tax withholding

[googily]

Do states that have income tax approach withholdings the same way the feds do, i.e., that a withholding from a year-end distribution can be looked upon as withholding across the entire year (in lieu of paying quarterly estimated taxes)? I can't quite figure out how to Google it

It looks like for my not-a-state (DC) I have to upgrade my inherited IRA at Vanguard to a brokerage account in order to have state taxes withheld. Odd.

 

[GalaxyBoy]

I am taking RMDs from an inherited IRA, as well as annual withdrawals from an inherited annuity (with 4 years left), so my strategy for these next few years is to have enough withheld from those distributions to cover me. DW also is taking SS and has a small pension, so we are withholding a bit from that as well. For lump-sum payments like the RMD, the amount withheld is deemed to have been taken over the entire year. Once the annuity is fully withdrawn, we'll be withholding more from SS or making estimated payments.

I'm not sure you can have VA state tax withheld from SS. In any case, SS benefits are not taxed in VA.

 

[audreyh1]

I seek to be very careful as I do conversions, alternating large conversions in tax years, so on the years in which my conversions are not giant size one, I should have no problem with staying in safe harbor from pension withholdings.

This also helps with not spiking up IRMAA too high in given years.

Nonetheless, when I'm not within safe harbor from pension withholding, I plan to have the trustee of the traditional IRA or 401k withheld 10 or 20 percent from the rollover-conversion and within 60 days pay that withhelod amount to the Roth trustee. I've been advised that withholding from any source -- wages, pensions or distributions/rollovers from retirement accounts -- counts towards safe harbor.

I don't really want to mess with estimated or quarterly tax payments or form 2210.

Since I have no opportunities at all for tax withholding, I do it all via estimated taxes. I’ve been doing it for a long time, so doing annualized income and filing form 2210 is no big deal for me. Quicken helps a great deal as it’s very easy to get a detailed report on my year to date income. I tend to have low income until Q4 when I receive 90% of my annual income. So I don’t tend to owe much until Jan 15 for Q4 when I owe a chunk.

 

[steelyman]

Fidelity provides options for both US and NC withholding percentages for an IRA withdrawal as well as suggested values. That was good for me as I’d greatly underpaid the state portion through 2018.

They have to have your current address to get it right.