Right...the 10% withheld when distributed, is just a pre-payment of the 10% penalty that is assessed in the calculations for your full tax return. You get credit for it by entering all the boxes on the 1099-R (box 4 is the Federal withholding done). Of course, depending on your total income and tax situation, that 10% pre-payment may not have covered all the taxes you owe.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
