If taxes are withheld on your retirement plan distributions, this is to help you towards paying the tax due on this income at tax time, so this is a wise thing to do.
If you took 30K annually in distributions, this is added to your other income (if any) to calculate your tax. Be sure to enter the amount of Federal Tax withheld as shown on your 1099-R when you enter it in TurboTax.
For instance, if you withdrew 30K from your retirement, and your tax due on this is amount is 3K, but your 1099-R shows you already paid Federal Tax of 2K, then tax due at tax time is only 1K. TurboTax calculates this for you after you enter your 1099-R.
Click this link for instructions on How to Enter 1099-R.
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