I took out a $40,000 loan from my 401k prior to losing my job.
The company managing the 401K paid back the loan and withheld
An additional $20,000 for tax purposes. My 1099R showed a
Distribution of $100,000 all totaled. Shouldn't it just show $60,000 total?

I don't understand what you mean by: "The company managing the 401K paid back the loan and withheld an additional $20,000 for tax purposes." Paid to whom? And what happened to the remainder of your 401(k) assets? Are they still with the original plan administartor? Or did they distribute the remaining balance to you (minus $20K withholdoing for taxes)?