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-   -   401k 10% penalty (https://www.askmehelpdesk.com/showthread.php?t=347240)

  • Apr 28, 2009, 01:13 PM
    mrichards123456
    401k 10% penalty
    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!
  • Apr 28, 2009, 01:45 PM
    Five Rings

    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

    Did the plan include a hardship provision? Did you satisfy the provisions thereof?
  • Apr 28, 2009, 02:20 PM
    mrichards123456
    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?

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