Can I withdraw from my 401k to pay back taxes? I owe $29,000, including taxes, interest and penalties. The IRS wants to levy my bank accounts, and I have no other way to pay.
by 
inthered
ANSWERS: 2
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Yes, but you will pay a penalty for doing so in two ways: a) the money you withdraw from your IRA will itself be taxable in the year it's withdrawn; b) there will be an additional 10% penalty imposed on the amount you withdraw. Have you offered to make a payment schedule? They're usually pretty cooperative if the taxpayer is making a good-faith effort to set up a plan.
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let's see: how many ways can you ask this same question?
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