How do you pay fees back from your 401k?

[Paladin26]

Hey guys long story short I had 2 accounts for 401k. One that has around 30k in it and another check that I had been sitting on for about 3 years for 5k. I ended up needed the 5k for an emergency so I cashed it and spent it. How do I pay the fees? Do I report them on my tax? Do I get a bill from the IRS? I am kinda confused?

Thanks

[jIM_Ohio]

this will be resolved on your tax return year after distribution

[jpg7n16]

You should receive a tax from from the company you cashed it out with called a 1099-R

Will be something like this: http://www.irs.gov/pub/irs-pdf/f1099r.pdf

Take that along with your W-2s and other 1099's (if applicable) to your tax preparer and they'll include it with your taxes for the year.

You should be aware that you may not have withheld any tax yet (you should have, but not guaranteed), and you will taxed at your marginal rate + a 10% penalty for early withdrawal. They'll either deduct that from your refund, or if it's not enough, you may have to pay some out of pocket.

My point is, you should probably keep $500-1000 handy just in case.

[Paladin26]

Cool guys thanks for the info.