Hardship withdrawal of 401K

Forum|Forum|1 year ago
December 16, 2024
1 reply
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Hello,

By the end of 2023 I am 64 years 10 months. In my tax year 2023: W2 gross is 84k, I withdrew 77k from 401k; Total income 161K, Itemized Deduction 28k, that leave 133K for taxable income which is about 20K; Fed income tax withheld is 6800. The amount I owe is 13k plus 4k for state tax. This 17K due now is a big amount for us to pay all at once. The reason that we tap into 401K is to help pay-off Covid aftermath related expense for the family. Please help me to understand if there is any tax code that help me to delay the 401K withdrawn, so I don’t have to add to my income in 2023? Is there any tax relief for my age in this difficult situation? Thank you kindly for your response!

Best answer by dmertz

Unless you live in an area where there was a federally-declared disaster in 2023 that qualified you to take a disaster distribution, the entire taxable amount of your 2023 401(k) distribution is includible in income on your 2023 tax return.

If you are unable to pay the taxes, you might consider a payment plan with the IRS"

https://www.irs.gov/payments/online-payment-agreement-application