I have a question that I don't think has been asked here yet and I think it's pretty important. Like most here, I took a 401(k) distribution in 2020 under the CARES Act and spread it over 3 years, as allowed. I do see on my tax submission that I only paid income taxes on 1/3 of that distribution on my 2020 taxes, but it appears as if all the federal/state taxes withheld from that withdrawal (by T. Rowe Price when I took the withdrawal) were applied to my 2020 tax submission on Turbo Tax. I am talking about the taxes withheld from the actual 401(k) withdrawal (by T. Rowe Price in my case) to be applied to my final income tax submission. As in, if in fact the distribution was spread over 3 years, but the taxes withheld on that 401(k) withdrawal were ALL applied in 2020, it's going to look real ugly come tax collection time. Does anyone know if this is what was done? I don't exactly remember an option to spread BOTH the withdrawal and the taxes withheld on that withdrawal over 3 years, it only offered the option to spread the actual withdrawal. That means, if you had $15k held for taxes from your 401(k) withdrawal, but all $15k was applied to 2020, rather than spread over 3 years, Years 2 and 3 are going to get hit much harder than Year 1. Am I being clear as mud?
