I had to withdraw from my Simple IRA retirement fund last year for emergency reasons. When I withdrew, the IRA company withheld 10% for federal taxes. When I did my taxes at the end of the year though, I was charged 25% in taxes. The form I received for the withdraw said that the taxable portion is XXX (where XXX is the total amount withdraw), not YYY (where YYY is the amount withdrawn after 10% withheld), and the form also said (box 4) the amount that was withheld and "taxable amount not determined"
So, my total penalty charged for the early withdrawal was 35% (along with it being counted as income and such, of course). Is there any case where this could happen, or was my taxes done wrongly?