We're required under federal law to report any distributions made to you in any given calendar year. Any or all amounts may be taxable. Your withholding amount is based on the federal tax election you filed with us.
If you did not make any election, per IRS guidelines, you would have defaulted to married with three exemptions. Under IRS rules, federal withholding is based on marital status and the number of allowances you claim when you make your federal income tax election.