This year, I did an early withdrawal from an annuity and the financial company withheld 10% for taxes--standard for an annuity in this circumstance. But I'll owe a lot more than that in taxes come April. So, essentially, they didn't withhold as much as I wanted them to withhold.
I was thinking I could correct this by making another withdrawal (say, $500), and before I do this, filling out a W4-P form, specifying that $8000 be withheld. This would cover the tax from the previous withdrawal.
Is this possible? Can I specify a withholding amount ($8000) that is greater than the amount I'm withdrawing?
Related question: can I just fill out the W4-P form without making any withdrawal? Will that cause the firm to set aside $8000 as necessary and pay it to the IRS?