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March 4, 2020
Question

Took early 401k withdrawl October 2019 ($28k) to help re-coup cost paid to IRS related to 2016 ($12k) in April 2019 and cover other exp. Qualify for Tax Levy Exemption?

  • March 4, 2020
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Employee
March 4, 2020

No.  An IRS levy involves the IRS taking the money directly from your 401(k) without any involvement on your part.  A distribution where the money is paid to you personally is not an IRS levy no matter what you did with the money.  A Form 1099-R reporting an IRS levy would have code 2 instead of code 1.