Should You Take an IRA Distribution to Avoid Underpayment Penalties?

In addition to having extra withholding on wages, I plan to use another strategy. I am going to take a distribution from an IRA, and then replace the money within 60 days.

Like many others, I like to pay my taxes as late as possible. I don't even mind paying interest, as I don't find it to be an expensive source of funds. But I do want to stay away from any penalties. I understand the withholding requirements in the Internal Revenue Service chart you provided, but it is not clear to me what penalties (other than interest) are involved. Can you elaborate on that?

-- Pete Mazza

Pete, ...