@lmd2281 wrote:
Looks like they screwed us over, even though they are breaking down the withdrawl over 3 years, it looks like they added all the taxes paid up front to the first 1/3 on last year's return instead of also breaking that down over 3 years. So now it's wanting us to pay taxes on that second 1/3 again when we shouldn't be.
The tax code required that all federal taxes withheld on the 2020 distribution be reported on the 2020 tax return as a tax payment. The federal taxes withheld on the 2020 distribution could not be spread over 3 years, only the distribution.
