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    mbelski's Avatar
    mbelski Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Oct 2, 2007, 09:52 AM
    Early Withdraw from 401(k) & taxes
    Hello,
    My husband lost his job and decided to take money from his 401(K) to pay some of his personal bills and for general spending money. Not smart - I know. He did not put any money away to pay the taxes or the 10% tax penalty. I'm very worried about when we file our taxes. Since it is his 401(K) I have no control over the money and can't keep him from continuing to take money out from the investment account he put the money into. I'm not even really sure he put the money in an investment account. The bank won't tell me anything. Should I file my taxes separately from him? What if he does not pay the tax? Could the IRS come after the house we jointly own. Any info would be helpful.
    Thanks
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Oct 2, 2007, 10:15 AM
    If he doesn't pay his taxes, the IRS can go after any assets held singly or jointly.

    If you file separately, you personally, would not be liable for any taxes he owes, but jointly held property would.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Oct 3, 2007, 11:18 AM
    Agreed, though when the IRS seized the asset and sold it for the back taxes, they would return HALF of the proceeds to the "innocent" spouse.
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