 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
Purposely failing to report income to the IRS is called "fraud." Bad things happen to people who commit fraud. Bear in mind that the IRS knows that you got this distribution, so if you don't include this on your tax return it's only a matter of time before they send you a nasty letter demanding payment of (a) the income tax due on the distribution, (b) the 10% early withdrawal penalty, and (c) interest due on the late payment of taxes. That's best case. Worse is they could also impose additional penalties for your fraudulent filing.
|
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
My husband Paul was permanently laid off from his job in December 2005, at the age of 60. He has approximately $130,000 in his 401(k) plan. He worked for the company for 20 years and is fully vested in the plan. I am his wife and am 51 years old. Neither of us is currently employed. For...
I have 78,000.00 in my 401k and I'm getting laid off without any severance. I've got 19k in debt. Would it make sense to take a distribution and suck up the 10% fee and taxes to pay off the debt?
My husband died in 2006, he had a 401k with me (spouse) as his benificiary. We have 2 young sons and I cashed out the 401k to use for the down payment of a primary residence. All of the paperwork has not been done, but I will get all of the papers in order during 2007. Is there a certain amount...
I had no choice but to take a hardship withdrawal from my 401K after being let go by my employer. It was a difficult time also having been displaced by a house fire and having to rebuild our home and pay for a portion of our alternate living expenses not covered by the insurance company. Being a...
View more questions Search
|
