"she withdrew in 201"? That must be a typo. Did she withdraw the money from the 401k in 2018 or 2019? How old was she when she took the money out of the 401k? Why did she withdraw the funds? If she was under 59 1/2 then there is a 10% early withdrawal penalty and ordinary income tax owed. She will receive a 1099R for the distribution from the retirement account. and that 1099R must be entered on your tax return. Putting it in a savings account is irrelevant, and it does not make sense, really. She has sixty days to roll it over into an IRA, so if it is not too late, she should consider doing that to avoid the 10% penalty and taxes.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
