My girlfriend left a job last year and had just begun contributing to a 401k, therefore she only had $16.77 in it when she left. Because it was so small, she simply cashed it out. She has received the form 1099-R. Question, what does she do with that $16.77 in terms of taxes? She is using the 1040A form to file.

She will have to file Form 1040, because she owes $2 in early withdrawal penalties.

How do I cash in My 401K?

HowdoI cash outMy 401K

First, you do NOT want to cash in your 401K. The above example had minimal effect, but an early cashout in the thousands of dollars normally means about HALF of the money goes towards taxes.