Unless rolled over to another qualified arrangement, the entire amount of the distribution will be counted as ordinary income. On top of that, if Sampiro is not 59.5 years old, (s)he will be on the hook for another 10% excise tax on the gross amount of the distribution.
There are a couple of special exceptions that exempt the first $10000 from Penalties. It’s all taxable, no matter what (some minor exeption). YMMV.
These are only applicable to distributions from IRAs though, right?
The state of Georgia contributes 200% of your contributions to your (private) 401(k) 
:eek: :dubious:
In general, “qualified plan” retirement accounts and IRA’s have similar tax treatment. In this case, consult a Tax professional. s
Oh, and Sampiro- since a good portion of your distribution was used to “pay off some medical bills”, you may have an exception for that portion of the withdrawel as regards the 10% penalty. See a tax professional.
Yep. And it vests immediately.
Correction- it vests after 1 year. (You have the option of a state retirement account that is supposedly better, but it takes 10 years to vest.)
**Sampiro **,
If I were in a situation such as yours, I would not contact TIAF to say that they overpaid you. I would ask for a detailed accounting of how they arrived at the amount that was paid to you. It’s possible that you erred in calculating what was owed you. With the detailed accounting, compare it to your records. This comparison should identify the source of any discrepancies. Even then, the discrepancy could be some error in your records. But at that point, if you’re certain that a mistake was clearly made, then go ahead and take the various steps that others have already pointed out to you. You can even point out to TIAF where the error occurred.
Sampiro, while this is not specifically directed at you, I feel I should tell you aboutmy Pit thread.