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mthacker
Jan 1, 2008, 06:26 PM
According to IRS regulations, can I get an early hardship withdrawal from my retirement account which both myself and my employer have contributed to, in order to pay back taxes (mainly 941 taxes) from my husbands business? All input will be greatly appreciated and if you know what written documentation is available with the information. Thanks Millie :o

MukatA
Jan 3, 2008, 04:55 AM
Even if you are allowed to withdraw the money, it will be subject to 10% early withdrawal penalty and will be taxed as ordinary income.
Instead your plan administrator may allow you to get a loan against your 401K.

AtlantaTaxExpert
Jan 3, 2008, 09:22 AM
Agreed.

The Form 941 taxes are EMPLOYMENT taxes that is NOT eligible to the waiver of the 10% Early Withdrawal Penalty which applies if the IRS requirs you to make 401K/IRA withdrawals to pay back INCOME taxes.