Q: PA-What's the Tax Penalty % for "Early W/Draw" of a Pension Plan? Also with "E W/D" can the IRS claim $ owed 4 yrs prior
My husband is currently disabled and we have had no income now for months. Until he can get any kind of help we have to pay to get our prior taxes done for his corporation (he no longer has - due to not being able to walk anymore); before we can do our personal taxes.
The only way to do that is to take out the retirement fund to pay to do taxes so we can get health insurance, car insurance and pay to keep a roof over our head and utilities on. Due to surgeries & bills, we've been unable to do our taxes the last couple of yrs. We need our 2018 done, then go from there on getting the other yrs done & setting up some kind of a payment plan.....Or any kind of help to repay it
Just worried that the IRS will claim the money as soon as it comes out. Also wondering how much of a Penalty Tax % will be applied. We live in PA.
We will probably have to file bankruptcy eventually; but, now we are selling what we can to survive.
Any reply is very much appreciated. Ty in advance
A: The penalty varies from plan to plan. You can check with the plan administrator to determine exact amount. It is unlikely that the IRS is even aware of the pension plan, do very doubtful that they will be able to seize money.
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