1099-R due to Unemployment

[Fakires5]

I had to take all of my 401K due to being unemployed. 

Does that qualify for a tax break or not to have a penalty.

I paid the taxes once I withdrew the money.

[dmertz · Accepted solution]

Simply being unemployed is not an exception to the early-distribution penalty.

Permissible exceptions:  https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-o...

Any tax withholding shown in box 4 of the Form 1099-R will be credited on your tax return.