401K loan, now working abroad
Previously I left my employer in December and began working the next year internationally (entire year, no US income). Since I had a 401k loan it was reported as a distribution but not until Februrary of the subsequent year. What tax implications will this have since my income is below the foreign income exclusion? Granted I will have to pay a 10% penalty for early withdrawl and list this as income. Will that income be reportable to Federal and NY state even though I lived abroad the entire year?