The federal tax withheld is still included in 2a. Should the amount in 2a be less the tax already withheld?

[xmasbaby0]

No one can see your screen or the document you are asking about.  2a of what---exactly?

[fanfare]

the amount stated should be the amount the custodian sent to the IRS.

[VolvoGirl]

 The tax withholding does not affect the taxable or gross amounts.   The tax withholding is just an estimated amount.  You have to enter the whole gross original amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket) and then the withholding is subtracted from the total tax to figure your refund or tax due. The gross amount shows up,on 1040 line 4a or 5a and the taxable amount on 4b or 5b.  The withholding will show up on 1040 line 25b.

[dmertz]

As VolvoGirl indicates, the amount withheld for taxes has no bearing on the taxable amount of the distribution.  Tax withholding is simply a down-payment toward the tax liability calculated on your tax return.