Took money from 401K. Over 60 years old. Paid tax at the time. Still owe quit a bit. Shouldn't taxes paid at time cover extra that is added to income total?

[jerry2000 · Accepted solution]

The amount withheld from your distribution was only an estimate, just like withholding from your paycheck. The exact amount of tax is not known until you prepare your tax return, because it depends on how much other income you have. The distribution is added to your other income  and taxed at whatever your marginal rate is. The total amount of added tax may be more or less than what was withheld. You get full credit for the tax that was withheld at the time of withdrawal. You aren't being taxed again, just once accurately.