question 1) this is not a taxable event. There was nothing that needed to be reported for tax purposes.
question 2) ask your former and current employer/administrators. It really depends on what each plan provides for. you may also have the option of rollong your 401k into an IRA
direct rollovers - trustee to trustee transfers are best because there's no withholding. if you were to take the money personally there is required withholding of 20% which you either will pay income taxes (maybe penalties also) on or need to make up personally when opening. the new account. you have 60 days to complete the transaction - get the money and put it in the new account. Failure would make the entire amount of the account taxable and possibly subject to penalties if you are not 59-1/2.
