@bhuether wrote:
I withdrew about $240,000. Contributions over the years were about $70K. I had included in the withdrawal what I thought was enough to pay the taxes, but incurred all sorts of additional costs moving, paying larger down payment than planned to keep mortgage affordable, loss on currency conversion, customs clearance, etc, and then had only about $5K left.
It's still not clear if you want to reduce your tax liability or pay the entire amount over time. You would only use the OIC if you want to reduce the amount. If you want to pay the full amount over time, I would pay as much as you can now (before February 15) and then file on time (April 18, if you have all your documents). If a payment plan is approved, the late payment penalty is reduced from 0.5% to 0.25% per month. You still pay statutory interest. So the overall APR equivalent (interest plus penalty) would be 6-7% per year.
The OIC application fee may be waived if you meet the low income criteria.
