Define after-tax 401(k) distributions.
A distribution from an employer sponsored 401(k) are taxable distributions. The plan administrator will normally withhold 20% of the distribution for federal taxes. The taxable amount from the distribution is entered on your tax return as ordinary income.
The Form 1099-R for distributions in 2022 will be available from the plan administrator in January 2023. You report the Form 1099-R on your tax return as received.
