turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

if i withdraw money from traditional ira and i am 60 years old i use the money to pay my IRS debt i owe. will i need to pay taxes on the withdrawal?

i owe $6916 this year. i plan to pay from aci tax website. i do not want to be on payment plan with irs
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

if i withdraw money from traditional ira and i am 60 years old i use the money to pay my IRS debt i owe. will i need to pay taxes on the withdrawal?

You will not have an early withdrawal penalty of 10% since you were older than 59 1/2, but the money you took out of the retirement account is taxable income that will be added to your other income.

 

To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

if i withdraw money from traditional ira and i am 60 years old i use the money to pay my IRS debt i owe. will i need to pay taxes on the withdrawal?

You you will have to pay taxes on the amount withdrawn from the IRA.   

There is an exception to the 10% early distribution penalty if the payment is made directly to the government to satisfy an IRS levy of the IRA under section 6331 of the Code.  But since you are older than 59 1/2 this does not apply.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question