I'm doing my taxes for last year, and I'm stuck on what to do about the distribution I took from my 401K last year.
I have the option to pay all the taxes now on the amount that I withdrew, or spread it out over three years. If I spread it out over three years, how is that money counted for taxes? Is it considered taxable income?
I don't want to end up with a huge tax bill next year or the year after if I make the wrong decision now.
