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Get your taxes done using TurboTax
I think you are confusing the money they took out of your distribution with the tax due on your distribution. You withdrew $10,000 of pension money and paid estimated tax of $2,800. At that point in time, the distribution has not been taxed, you simply paid an estimate of the tax due that will be settled when you add the distribution to your other income on your tax return. Once you complete your tax return that is the only time the income is taxed, the money they wihheld from your distribution is merely used to pay the tax calculated when you prepare your tax return.
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March 2, 2023
4:05 PM