If you choose to spread it over 3 years, the income will be added to AGI in 3 equal parts on your 2020, 2021 and 2022 federal tax returns via Form 8915-E included with each of those tax returns. So you will be adding 30,000 withdraw to each year. Then your income will be 120k + 30k = 150k. And I think I saw all the 401k withholding will go on the 2020 return.
Another user posted....
Your only choices will be to include the entire amount on your 2020 tax return or to apply it in 3 equal parts on your 2020, 2021 and 2022 tax returns via Form 8915-E. This is dictated by section 2202(a)(5) of the CARES Act.
