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Shirley Gregg
Nov 27, 2006, 08:00 PM
Is there a penalty for early withdraw on a 401k to pay a past tax lien?

Shirley Gregg
Nov 27, 2006, 08:05 PM
Is there a penalty for early withdraw on a 401k to pay a past tax lein?
Is there a penalty for early withdraw from a 401 K when the money is used to pay a state tax lean

AtlantaTaxExpert
Nov 28, 2006, 06:08 PM
Yes. Paying off state taxes will NOT exempt you from the 10% early withdrawal penalty.

An IRS levy, on the other hand, will qualify for for an exemption.