And if this if from a prior 401(k) plan the instructions that came with the 1099-R "should" have told you that you had the option to roll that amount into a Traditional withing 60 days of the receipt of the check that would not be taxable. A 401(k) distribution whether the result of a legal action or not is fully taxable.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
