@DIY_Tax_Person wrote:
In reality I receive only $9,000 from Vanguard.
No. You received $10,000 but $1000 was used to pay the tax on the $10,000. All $10,000 is taxable income.
Actually, that is only 10% withholding so if you are under age 59 1/2 then that will only pay the additional 10% early distribution penalty and not the ordinary tax on the $10,000. If you are in the 20% tax bracket then you probably should have had 30% ($3,000) withheld for tax.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
