Retirement tax questions

Thank you for the reply and link to IRS doci.   

 

So if I am understanding this correctly..... The 1041 will have the "incorrect" Distributable Net income amount, but by inputting the Federal Tax withheld in Line 13 box B on the K-1 worksheet, this will pass the Credits and recapture of the tax amount already paid on to the beneficiaries K-1.