Yes. Whether you are retirement age or below retirement age, a distribution from a 401(k) will be taxable. The plan administrator or employer if applicable will send you a Form 1099R.
If you transferred the amount to another retirement plan, that portion may be reported but should not be taxed. If you are below retirement age (59 1/2) there may also be a premature distribution penalty, usually 10%.
- Follow the instructions here to enter your information in TurboTax Free Edition:
- My Account > Tools > Topic Search >
Type 1099r > Go
- Click the screenshots attached to enlarge and view for
assistance.
