Q&A: Can I request that the IRS levy my 401k to pay off a tax debt?
Question by chris_nystrom: Can I request that the IRS levy my 401k to pay off a tax debt?
I owe the Feds $ 39K. I have $ 55K in my 401K. Can I request the IRS to levy my 401K for the funds? And it they do will my strategy administrator (Fidelity) pay it?
Best answer:
Answer by Howard L
You do not require to request it, they can do it on their own if you do not pay what’s owed. You can also make the withdrawal on your own. The good news, there is no early withdrawal penalty if the cash is utilized to pay federal tax you owe. See exception 10 on page 3 of the link.
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