Solved
The Gross Distribution was $6634 and Fed withheld was $1327. Once I enter the 1099R in Turbo Tax, I owe a further $2115 in Federal Tax. This makes my tax paid on this amount above 50%
When you enter the 1099-R including the amount of tax withheld, you get credit for that tax on your tax return. The amount of tax you must actually pay on the distribution may be more or less than the amount withheld but the actual change is only the difference between what was withheld and what the tax is after entering the distribution.
Think of it the same as you think of withholding on your W-2.
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