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Old 03-21-2015, 08:39 AM
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Paying off taxes with 401k

SO here is my situation. It's not good. I owe 3k for last years taxes which I have an installment agreement on. This year I will owe about 16k which I just don't have. I currently have a 401k loan with about 15k left to be paid. So 401k loan is not an option. Can I have the IRS levy my 401k to pay my tax debt off? I have enough in there to pay it off. This is my only option left. I am in serious trouble. Thanks



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Old 03-21-2015, 09:44 PM
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SO here is my situation. It's not good. I owe 3k for last years taxes which I have an installment agreement on. This year I will owe about 16k which I just don't have. I currently have a 401k loan with about 15k left to be paid. So 401k loan is not an option. Can I have the IRS levy my 401k to pay my tax debt off? ========>>>>>I guess you actually do not need to let them levy your 401K acct; he irs can do it on their own if you don't pay what's owed. You can also make the withdrawal on your own. The good news, there is no early withdrawal penalty of 10% if the money is used to pay federal tax you owe to them; that amounts drawn due to financial hardship "may include any amounts necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution." Or aslongas you're allowed to take a distribution from your retirement plan acct., you can pay them.

I have enough in there to pay it off. This is my only option left. I am in serious trouble>>>>As mentioned above.



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Old 03-21-2015, 11:39 PM
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Thanks for the reply.



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