Nowwhat
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How to correct a Deposit from 401k mistake

I withdrew all funds from a former employer 401k. The funds were made out in a check payable to me.  I deposited the funds to my checking account.  I just learned I will be taxed big time for not having the funds made payable to my bank, and going through my hands.  I have already paid 20% for the withdrawl from my former employer account.  How can I correct this?

I am recently retired at 74.  Thanks.