You are correct. The withholding of 10% is probably not enough. You income probably has you in a tax bracket that is above 10%. You should have the option to split the distribution amount and thus taxes over tax years 2020, 2021 and 2022. Any withholding amounts however are only credited to tax year 2020.
SINGLE JOINT
12% $9,876 to $40,125 $19,751 to $80,250
22% $40,126 to $85,525 $80,251 to $171,050
24% $85,526 to $163,300 $171,051 to $326,600
32% $163,301 to $207,350 $326,601 to $414,700
The same would be true for the state taxes depending on their rates and brackets.
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