Withdrawals from a pension when you retire after 55, but are under 59 1/2 are exceptions for the 10% early withdrawal penalty. See this IRS document.
Code 2 in box 7 of your form 1099-R means Early Withdrawal, exception applies. TurboTax has already exempted you from the early withdrawal penalty. But the amount withdrawn is subject to income taxes.
Please understand that tax withheld is just an estimated advance payment of your taxes. The final tax amount can only be determined when you fill out your tax return. The taxes withheld serve as a credit against your tax liability. If too much tax was withheld, you'll receive a refund; otherwise, there'll be a tax due.
In your case, you may be in a higher tax bracket and the 12% of taxes withheld weren't sufficient.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
