You'll receive a Form 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. from the payer of your 401(k) distribution. A copy of that form is also sent to the IRS.

To report the 401(k) distribution in your Online TaxAct return:

1. From within your TaxAct return, click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
2. Click the Income dropdown.
3. Select Taxable Pensions and Annuities (Form 1099-R).
4. Select Review.
5. Click + Add Form 1099-R to create a new copy of the form or click Edit to edit a form already created.
6. Answer the questions on the screen.

For additional information, go to IRS Publication 575 Pension and Annuity Income.