In January a form 1099-R for the entire distribution will be mailed to you and that must be reported on the tax return ... and the taxes that were withheld will be credited against the total taxes owed which will include the penalty. They withheld 20% however that may not be enough ... 10% is for the penalty and 10% for the fed taxes however the distribution plus your other income will most likely put you in a higher tax bracket ... then your state may also tax the distribution ... so you may need to do some calculating and make an estimated payment before the end of the year.
