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I retired last year at age 52 and started a 72(t) substantially equal payment withdrawal from my IRA. I requested my IRA trustee to withhold appropriate Fed and State taxes before this distribution was made. This worked ok in 2000. Now in 2001, I find I am back at work as a part time consultant but still obligated to continue my 72(t) distribution for many years to come.

My questions:

1. As long as I have enough Fed and State withholding taken out of my IRA distribution to cover all my income sources, do I need to make quarterly estimated tax payments?

2. Since my consulting income may be enough to meet my ongoing income needs during the year, can I wait until Dec of 2001 to take my 72(t) distribution (with enough withholding to cover all my 2001 income) thus skipping all quarterly estimated tax payments and holding onto my money as long as possible?

Appreciate any comments.

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