Since this distribution apparently qualifies as a Coronavirus-Related Distribution (CRD) due to you being furloughed, you have the option to spread the taxable amount of the distribution equally over 3 years. The amount included each year will be taxed as ordinary income at your marginal tax rate for that year which can only be determined by taking into account your entire tax situation. You also have the option to repay some or all of the distribution within 3 years of the date of the distribution to avoid taxation entirely on the amount repaid. Since this is a CRD, there is no early-distribution penalty.
CRDs will be reported on the yet-to-be-released 2020 Form 8915-E.
