Solved
With the withholding happening automatic, Do I need to fill out the form? Or can I cash out without worrying out following up with tax forms?
You will receive a 1099-R early next year, and you absolutely have to enter this in your 2024 tax return (assuming you did this after Jan 1, 2024).
And note that the penalty and the withholding don't necessarily cover the tax due from this event. I encourage to create a test return and enter the probable data for 2024 to see how it affects your tax bill.
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