Is there an online calculator somewhere on the Internet that compares the "costs" of taking an early, ex-employee, w/d from a 401k versus paying the IRS's installment payment plan for a 5 figure tax owed, over a 3-6 year period ?
Need on-line calculator re 401k w/d vs IRS installment payments
Apr 16, 2019
1 Replies
Some penalty and interest calculators here:
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Interest rate is subject to adjustment throughout the term of an installment agreement. Penalty rates may vary depending upon where the taxpayer is in the collection process. Installment agreement will incur user fee/setup fee. Installment agreement may include filing of Notice of Federal Tax Lien which may adversely affect credit. Installment agreement default may result in unanticipated enforced collection actions. Used to be, an IRS levy of an IRA or 401k would avoid the early withdrawal penalty. IRM Part 5 provides a lot of good information on the collection process, including installment agreements, liens, and levies.
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