For ease of discussion - with a qualifying early withdrawal of $30,000 this year, and selecting to defer taxes over 3 years ( 20, 21&22), when does the $30k show up as adding to my income. Would only $10k show added to my 2020 gross income and then $10k each year thereafter? Or does the whole $30k get added to my 2020 tax return ( increasing my gross income by $30k in 2020) but the taxes for that increase get split into thirds and spread out between the years.
Also if I select to have 20% withheld from the withdrawal in 2020, wouldn't the whole $6,000 show as withheld for this year? Then since only $10k is applied to 2020, I would get a huge refund for 2020 while still then owing for the next two years?
I cannot find specifics anywhere and might be over thinking this, but wanted to see if anyone might have any further details on this.
Thanks!
