I'm not sure that is correct, a friend has already done with Taxslayer couldn't wait for TT and the 10% penalty was taken away from the whole withdrawl, and the balance was split for this year. So for ex: she took 18K 6 was paid last year yes she paid taxes and put the taxes for the full amount she took, but this year they didn't put in the field that she paid no taxes and screwed her that would defeat the purpose of being able to use the 401K in the first place, they just included as income and her refund went down about $800 bucks.
