The amount you had withheld when you took money out of your retirement account was an estimate of the tax you might owe. Remember all the times you have had money withheld from your paychecks and received a W-2? Then you prepared a tax return and the amount of tax withheld (as shown in boxes 2 and 17 of your W-2) was reconciled with your actual tax liability ----so you either got a refund or maybe owed more? The same thing happens when you have tax withheld from a distribution from a retirement account. They withhold some tax. It might have been too much or too little. The amount you owe is reconciled when it is combined with all of your other income. You make sure that you enter everything correctly from your 1099R to show the tax that was withheld.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
