PA early withdrawal 401k what to choose and how to determine basis

[arubadawn]

My husband took an early withdrawal from his 401k and rolled the rest into an IRA when he lost his job.  I'm in the state side of turbotax and it is asking us to Choose the description or type of retirement distribution that best matches your Pennsylvania retirement from the list below.  The code he has is a "1". I'm thinking it is early distribution from 401k.... Is that correct ? He is only 51 and not eligible to retire.  Then it asks for a basis but no explanation what that is?

[MaryK4]

Yes, you would select Early distribution from 401k.  Basis is the amount you do not pay tax on because the contributions were not deducted on a previous tax return.  Generally, it applies to traditional IRAs or annuities.  401ks are pretax contributions so you have no basis.  (It is deferred compensation because you did no pay tax on it when you earned it- you put it in the retirement account so it would be taxed later.)