Starter issue, won't hit the flywheel

[Motorcitydak]

Put the flywheel, bell housing and starter on for the first time. Pulling the starter gear out of the starter looks like it is not even close to engaging the flywheel. From what I can measure with the gear out as pictured it is about 6/10 of an inch away from where it should be. Does the gear come out even further when it is given power? If not I am not sure what to do besides pulling the starter gear farther off and welding it in place. This is the starter that is recommended, not sure what to go for now

https://static1.pt-content.com/images/pt/2014/09/DSCF3135_zps913dfed1-1.jpg (http://s57.photobucket.com/user/motorcitydak/media/DSCF3135_zps913dfed1.jpg.html)

https://static1.pt-content.com/images/pt/2014/09/DSCF3139_zpsa9cf9663-1.jpg (http://s57.photobucket.com/user/motorcitydak/media/DSCF3139_zpsa9cf9663.jpg.html)