If you take a distribution from your 401k you will receive a 1099R in late January. You will enter that 1099R into the Wages & Income section of TurboTax--that distribution is taxable income to you. In addition, if it is an early distribution, you will owe a 10% early withdrawal penalty. TurboTax will calculate thatbased the date of birth you enter in Personal Info.
Go to Federal> Wages and Income>Retirement Plans and Social Security>IRA 401 k) Pension Plan Withdrawals to enter your 1099R.
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