Deductions & credits

You have to deposit the withholding amount from your own other money.   If you don’t  replace the withholding with your own money then the withholding became a taxable distribution and possibly have the 10% Early Withdrawal Penalty.  

On your tax return you have to report the 1099R you get for it.   It won’t be taxable and you will get credit for the withholding taken out.  

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