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

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.

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1 Best answer

Level 15

Jun 4, 2019 8:54:00 PM

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

Level 15

Jun 4, 2019 8:53:57 PM

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>

New Member

Jun 4, 2019 8:53:59 PM

Thanks for the quick response

Level 15

Jun 4, 2019 8:54:00 PM

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