IRA Withdrawal is Charging a Penalty

We are trying to process a withdrawal for an IRA. When we do the investment payout, a dollar amount is appearing in the withholding line. Why?

This occurs when an IRA withholding amount has been configured on the Investment System Settings --> Penalty/Withhold tab. If you do not wish to charge a penalty on IRA withholdings, edit the IRA Withholding amount on that screen to be 0.