| He will owe normal state and federal income taxes on the $5,000 PLUS a 10% Early withdrwal Penalty if he is not at least 59.5 years of age.
The better way for him to have handled this was to roll the money over into a rollover IRA, then withdraw the money from the IRA. That way, he could have claim the Higher Education Expense exemption, which applies ONLY to IRA withdrawals, not 401Ks. | 
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