Withdrawals and distributions after separation from service are generally included in your taxable income in the distribution year. After the close of the tax year in which you take a distribution, you will receive a 1099R tax form. It will include information about your distribution.
Exceptions to this rule may apply if:
You roll over the taxable portion of a distribution to an Individual Retirement Account (IRA) or other employer’s plan within 60 days of distribution.
You elect a direct rollover of the taxable portion.
You are eligible for and use a special averaging provision.
Your distribution or part of your distribution represents the return of after-tax contributions that you have made to the plan.