Ask Experts Questions for FREE Help!
 
Free Answers in 3 Easy Steps

Register Now		 3 Steps
 
Ask QuestionsprogressAnswer QuestionsprogressBuild ReputationprogressBecome an Expert
 
At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:
  • Get free answers from experts in any of our 300+ topics.
  • Accept money for answers that you provide.
  • Communicate privately with other members (PM).
  • See fewer ads.
  Answer this Question    Ask about Taxes    Ask about another Subject  
 
PDA

mrichards123456
Apr 28, 2009, 01:13 PM
Hi,
I received a letter from the IRS today that I need to pay the 10% tax on the 401k that I claimed the following year. My company closed and I withdrew all my money out of my 401 k to save my house. I paid off ALL my bills so I would not loose my house. Can I file a hardship letter to avoid paying this 10% penalty? Can I file a extension to the IRS and send a Hardship Letter? How can I avoid this large penalty as I can not afford to pay this large amount! Is there any other clauses that could be filed to the IRS as I was just trying to save my home!

Thank you!
Five Rings
Apr 28, 2009, 01:45 PM
The only thing I can find in this matter is this:
The Fix Is In: Common Plan Mistakes - Hardship Distributions in a 401(k) Plan (http://www.irs.gov/retirement/article/0,,id=183197,00.html)

Did the plan include a hardship provision? Did you satisfy the provisions thereof?
mrichards123456
Apr 28, 2009, 02:20 PM
This was a company I worked for not my own personal business. I worked for this company for 12 years. I did not fill out any Hardship Letter, can I send as an amendment with a extension on previous taxes?