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New Member
posted Mar 7, 2025 9:43:28 AM

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

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2 Replies
Level 15
Mar 7, 2025 9:50:33 AM

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.

 

Level 15
Mar 7, 2025 9:50:36 AM

You you will have to pay taxes on the amount withdrawn from the IRA.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