When you take a
premature distribution from an IRA or pension plan, you pay both tax and a
penalty of 10%.The 20% already paid covers your 10% penalty and whatever
portion of your tax that falls into the 10% bracket of taxable income. Rarely
does this cover all the taxes since you probably are being taxed at a
higher rate than 10%. There are exceptions to the penalty in the
link below. You may possibly be able to take advantage of one of them.
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...
