Yes, you need to include in income the total amount of your 401(k) distribution reported on Form 1099-R (PDF),Distributions From Pensions, Annuities, Retirement on Profit-Sharing Plans, IRAs Insurance Contracts, etc. In addition, if the distribution occurs before you are age 59 1/2, you may need to pay a 10 percent additional tax on early distributions from qualified retirement plans unless you meet one of the exceptions in Publication 575, Pension and Annuity Income. You will include the federal income tax withheld on the appropriate line of your federal tax return along with any other federal income tax.

References:

• Publication 575, Pension and Annuity Income
• Form 5329 (PDF), Additional Taxes on Qualified Plans (including IRA's), and Other Tax-Favored Accounts
• Form 5329 Instructions, Additional Taxes on Qualified Plans (including IRA's), and Other Tax-Favored Accounts
• Tax Topic 558, Tax on Early Distributions from Retirement Plans
• Tax Topic 412, Lump-Sum Distributions

Source: www.irs.gov