Is there any help from irs for taxes due cause of early 401k withdrawal to pay other debt? High interest payments so I withdrew 401k to pay off. Now back where I started.

[angles2233]

Had some high % credit cards and other old loans I wanted to pay off. My monthly debt payment overtook my monthly income limit. I withdrew my 401k to help pay off those debts. Now the taxes due on the withdrawl are over $30,000 to federal and state. I managed to pay the $15,000 to state but not able to pay the federal. I'm right back to another debt situation where I can't pay it. It basically put me right back where I was before withdrawing the 401k. Is there any help or relief or options, irs or otherwise, to help with this since it's not really my job/payroll/income tax situation where I didn't pay enough on what I made from my work? I usually actually get a refund.

[Opus 17]

All withdrawals from a pre-tax 401k are always subject to regular income tax, plus a 10% penalty if you are under age 59-1/2.  There are no exceptions to the income tax and debt is not an exception to the penalty.  Depending on how much you withdraw and what state you live in, taxes and penalties can eat up as much as 50% of the withdrawal. 

If you can't pay your federal taxes owed, you can request a payment plan.  You want to do this directly on the IRS web site--trying to set up a payment plan using Turbotax is not effective for several reasons.  If you are just filing your taxes now, tell Turbotax you will pay by mail.  Make as large a tax payment as you can electronically at www.irs.gov/payments (paying more now will reduce the interest and penalties you will be assessed on the balance due).

Then go to the IRS web site and request a payment plan.  There is a non-refundable application fee.  

https://www.irs.gov/payments/payment-plans-installment-agreements

[Bsch4477]

You can set up a payment plan. 

https://www.irs.gov/payments/payment-plans-installment-agreements