DOES A PAYMENT PLAN WITH THE IRS QUALIFY FOR EXCEPTION TO EARLY RETIREMENT DISTRIBUTION

daniela-lozano · ‎June 4, 2019

I have an early distribution on my retirement account. Funds were used to pay 2017 taxes to the irs for both 1040 and 941 quarterly. Does that qualify for exception to penalty for early withdrawal.

DoninGA · ‎June 4, 2019

No. Payment of back taxes owed is not an exception to the early withdrawal penalty.
See this IRS Tax Topic - <a rel="nofollow" target="_blank" href="https://www.irs.gov/taxtopics/tc558">https://www.irs.gov/taxtopics/tc558</a>

daniela-lozano · ‎June 4, 2019

Thanks for the quick response

Critter · ‎June 4, 2019

No it does not unless the IRS took the money in a levy.

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DOES A PAYMENT PLAN WITH THE IRS QUALIFY FOR EXCEPTION TO EARLY RETIREMENT DISTRIBUTION

Retirement tax questions

Retirement tax questions

Retirement tax questions