Took 80k from 401k during covid. I distributed the tax payments for 3 years.
I just realized that the 8915-E from 2020 divided the 80k to (3) payments of 26.6k. However, my 1099R from Fidelity shows they withheld 10% in federal and state taxes. The money I received was 68.8k after the taxes.
Shouldn't my payments be divided to 22.9k x (3) years?
I checked and everything was entered properly in the turbotax 1099-R
My 1099R shows 80k in box 1 and 2a. 8k federal tax in box 4 and 3.2k state tax withheld. Box 7 shows "1" -No other boxes are checked. Fidelity told me my 8915-E form will prove that it was for covid-19 so I wouldn't get the 10% early withdrawal penalty.
I feel I have been paying way too much tax on this. Am I?
