Paying income taxes on IRA distributions

  • I have taken a distribution from my Traditional IRA in 2006. When must I send a tax payment for this distribution? Must this be done when I take the distribution or can I wait until next year when I file my tax return? Thanks Marty Kovacs mkovacs@attglobal.net


  • I have been doing taxes this year, and the short answer is... it depends. Primarily it depends on how much you want to owe at the end of the year and whether there will be any penalties on your overall tax bill. There is nothing that requires you to pay tax on this income immediately, but if you would rather be safe than sorry, you could make an estimate on your state and federal taxes, but I would consult your tax advisor for information specific to your situation, I really do not have enough information to give you a list of options.


  • The key is 'must'. You must declare it as income on your return for this year. However, I think the above comment deals with interest and penalties that may accrue if you don't pay right away.







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