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rick13
New Member

I will owe a lot of taxes and am considering the IRS loan instead of a 401k withdrawl. How do I do that while electronic filing?

 
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DanO
New Member

I will owe a lot of taxes and am considering the IRS loan instead of a 401k withdrawl. How do I do that while electronic filing?

I am not aware of the IRS loaning funds.

You could set up an installment payment plan with the IRS through TurboTax.

If permitted, you could also take a loan from your 401(k) plan and pay back with interest to your account, and avoid any early withdrawal penalty and any federal and state taxes.

Click here for information from TurboTax FAQ for setting up a payment plan.

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2 Replies
SweetieJean
Level 15

I will owe a lot of taxes and am considering the IRS loan instead of a 401k withdrawl. How do I do that while electronic filing?

Or do you mean IRA? Loans are not permitted from IRA plans.
DanO
New Member

I will owe a lot of taxes and am considering the IRS loan instead of a 401k withdrawl. How do I do that while electronic filing?

I am not aware of the IRS loaning funds.

You could set up an installment payment plan with the IRS through TurboTax.

If permitted, you could also take a loan from your 401(k) plan and pay back with interest to your account, and avoid any early withdrawal penalty and any federal and state taxes.

Click here for information from TurboTax FAQ for setting up a payment plan.

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