Retirement tax questions

Yes, you do need to report 401K distribution. In fact, you should receive form 1099-R from your 401K administrator reporting the withdrawal- and that's how it should be reported on your tax return.

Here is 1099-R data entry:

1. Federal Taxes
2. Wages and Income
3. Scroll down to Retirement Plans and Social Security
4. Select IRA, 401(k), Pension Plans (1099-R)