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	<title>Comments on: Can I deduct from my 401K to pay taxes due to the IRS without a penalty?</title>
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	<link>http://www.talkaboutretirement.net/united-states/can-i-deduct-from-my-401k-to-pay-taxes-due-to-the-irs-without-a-penalty/</link>
	<description>Issues concerns retirement and retired living</description>
	<pubDate>Sat, 11 Feb 2012 21:05:40 +0000</pubDate>
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		<title>By: digdowndeepnseattle</title>
		<link>http://www.talkaboutretirement.net/united-states/can-i-deduct-from-my-401k-to-pay-taxes-due-to-the-irs-without-a-penalty/#comment-1053</link>
		<dc:creator>digdowndeepnseattle</dc:creator>
		<pubDate>Thu, 15 Oct 2009 22:40:24 +0000</pubDate>
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as others have said...the answer is no.  I'm wondering how you got the money out to begin with.  As bad as this sounds...mold infestation isn't a reason to allow for an in-service withdrawal.</description>
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<p>as others have said&#8230;the answer is no.  I&#8217;m wondering how you got the money out to begin with.  As bad as this sounds&#8230;mold infestation isn&#8217;t a reason to allow for an in-service withdrawal.</p>
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		<title>By: ashwath v</title>
		<link>http://www.talkaboutretirement.net/united-states/can-i-deduct-from-my-401k-to-pay-taxes-due-to-the-irs-without-a-penalty/#comment-1052</link>
		<dc:creator>ashwath v</dc:creator>
		<pubDate>Mon, 12 Oct 2009 21:55:58 +0000</pubDate>
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no</description>
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<p>no</p>
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		<title>By: Judy</title>
		<link>http://www.talkaboutretirement.net/united-states/can-i-deduct-from-my-401k-to-pay-taxes-due-to-the-irs-without-a-penalty/#comment-1051</link>
		<dc:creator>Judy</dc:creator>
		<pubDate>Mon, 12 Oct 2009 16:57:23 +0000</pubDate>
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No, you owe the penalty on the first withdrawal, and if you take more out to pay the tax, you'll pay a penalty on that also.</description>
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<p>No, you owe the penalty on the first withdrawal, and if you take more out to pay the tax, you&#8217;ll pay a penalty on that also.</p>
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		<title>By: newjerseyguy</title>
		<link>http://www.talkaboutretirement.net/united-states/can-i-deduct-from-my-401k-to-pay-taxes-due-to-the-irs-without-a-penalty/#comment-1050</link>
		<dc:creator>newjerseyguy</dc:creator>
		<pubDate>Sat, 10 Oct 2009 05:25:09 +0000</pubDate>
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No.</description>
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<p>No.</p>
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		<title>By: quantumrift</title>
		<link>http://www.talkaboutretirement.net/united-states/can-i-deduct-from-my-401k-to-pay-taxes-due-to-the-irs-without-a-penalty/#comment-1049</link>
		<dc:creator>quantumrift</dc:creator>
		<pubDate>Fri, 09 Oct 2009 04:34:20 +0000</pubDate>
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No. It does not count. ONLY under certain circumstances can you 'borrow' against your 401K (first time home buyer, etc).

If you take more money out of your 401K you'll get HIT AGAIN. Don't you realize this? Your 401K is set up for long term investment that is not like a bank account.

You should have financed the bathroom remodel with a different method. You would have been better to finance it, and then take the tax deduction when you sold the house as home improvement.

You need to get better tax advice NOW.

And you should NOT owe the IRS money - that early withdrawal penalty was taken out when you withdrew the money (witholding).

If you do not have the money to pay your tax, you should contact the IRS asap and set up a payment schedule.</description>
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<p>No. It does not count. ONLY under certain circumstances can you &#8216;borrow&#8217; against your 401K (first time home buyer, etc).</p>
<p>If you take more money out of your 401K you&#8217;ll get HIT AGAIN. Don&#8217;t you realize this? Your 401K is set up for long term investment that is not like a bank account.</p>
<p>You should have financed the bathroom remodel with a different method. You would have been better to finance it, and then take the tax deduction when you sold the house as home improvement.</p>
<p>You need to get better tax advice NOW.</p>
<p>And you should NOT owe the IRS money - that early withdrawal penalty was taken out when you withdrew the money (witholding).</p>
<p>If you do not have the money to pay your tax, you should contact the IRS asap and set up a payment schedule.</p>
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		<title>By: Mr Chris</title>
		<link>http://www.talkaboutretirement.net/united-states/can-i-deduct-from-my-401k-to-pay-taxes-due-to-the-irs-without-a-penalty/#comment-1048</link>
		<dc:creator>Mr Chris</dc:creator>
		<pubDate>Tue, 06 Oct 2009 12:42:21 +0000</pubDate>
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Not if you aren't at least 59 1/2, sorry.  Withdrawing from a 401k or traditional IRA early is almost always a bad proposition.  Consider getting a small home equity loan, assuming of course that you have equity in your home.</description>
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<p>Not if you aren&#8217;t at least 59 1/2, sorry.  Withdrawing from a 401k or traditional IRA early is almost always a bad proposition.  Consider getting a small home equity loan, assuming of course that you have equity in your home.</p>
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		<title>By: ediblues</title>
		<link>http://www.talkaboutretirement.net/united-states/can-i-deduct-from-my-401k-to-pay-taxes-due-to-the-irs-without-a-penalty/#comment-1047</link>
		<dc:creator>ediblues</dc:creator>
		<pubDate>Sun, 04 Oct 2009 17:01:49 +0000</pubDate>
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Taking money from your 401k means double tax. You get taxed everytime you borrow. Remember when you pay it back and take it during retirement, you get taxed again!</description>
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<p>Taking money from your 401k means double tax. You get taxed everytime you borrow. Remember when you pay it back and take it during retirement, you get taxed again!</p>
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		<title>By: The_Crow</title>
		<link>http://www.talkaboutretirement.net/united-states/can-i-deduct-from-my-401k-to-pay-taxes-due-to-the-irs-without-a-penalty/#comment-1046</link>
		<dc:creator>The_Crow</dc:creator>
		<pubDate>Sun, 04 Oct 2009 14:08:18 +0000</pubDate>
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Sorry, no, you will incur another penalty.  Better to borrow against your 401K (and not withdraw).  Borrowing money is not a taxable event because, in theory, you have to pay it back (typically with some interest).  Check your plan out, I bet you could do it that way.</description>
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<p>Sorry, no, you will incur another penalty.  Better to borrow against your 401K (and not withdraw).  Borrowing money is not a taxable event because, in theory, you have to pay it back (typically with some interest).  Check your plan out, I bet you could do it that way.</p>
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