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With additional information concerning your filing status, income, deductions, etc.
What are the tax consequences of this action (early withdrawl penalty, etc.)?
In not, you may wish to request withholding on your IRA distribution, or make estimated payments.
Here are some links to additional information to assist you.
In general, you will not need to pay an underpayment penalty if the following apply: You expect to owe less than 00 dollars in federal tax and/or You had no tax liability in 2006Your total amount of withholding and estimated payments is at least as much as your 2006 tax (or 110% of your 2005 tax if AGI more than 150K) If you did have tax liability in 2006, what you need to do is estimate your 2007 tax liability with all income including the IRA distribution, subtract any tax withholding, and see if the remainder is less than 1000.
The tax-free nature of growth on a Roth IRA makes it a highly appealing investment account to hold, and a similarly appealing type of account to inherit.
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