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Level 1

401k Withdrawl to pay taxes

In 2018 I had to withdraw funds from my 401k to cover underpaid taxes. While filing 2019, there is a box for "Tax Levy". Can I insert the amount I paid in taxes, from that withdrawal, in that spot? If not, what is meant by "Tax Levy"? 

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Level 15

401k Withdrawl to pay taxes

Ok ... an IRS levy is when the IRS forces you to liquidate a retirement account to pay a tax bill they sent you.  If you voluntarily take a distribution to pay your tax bill that is not the same thing. 

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Level 15

401k Withdrawl to pay taxes

Ok ... an IRS levy is when the IRS forces you to liquidate a retirement account to pay a tax bill they sent you.  If you voluntarily take a distribution to pay your tax bill that is not the same thing. 

View solution in original post

Level 15

401k Withdrawl to pay taxes

An IRS levy is a seizure of your assets by the IRS.

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Level 1

401k Withdrawl to pay taxes

Thanks for the clarification. Knew it was wishful thinking!