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jjfgkf
New Member

Can I take an early withdraw from my ira to pay my tax bill

I have a large tax bill due to being unemployed last year and having to withdraw from my ira, can I with from my ira to pay my tax bill
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2 Replies
MaryK4
Expert Alumni

Can I take an early withdraw from my ira to pay my tax bill

No, there is an exception to the early withdrawal if it is because of an IRS levy of the plan, but you would have to pay the taxes on the distribution and any penalties if you made a withdrawal to pay a current tax bill.  You may want to set up an Installment plan (see Can I set up a payment plan for my taxes? - TurboTax).

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Can I take an early withdraw from my ira to pay my tax bill

Yes, you can take more out of your IRA to pay your tax bill, but that withdrawal itself will also be taxable and subject to the 10% early withdrawal penalty.

 

In any case, you might also be subject to underpayment of estimated tax penalties and interest.

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