Skip to main content

2 replies

April 8, 2025

I don;t know what you are asking.

 

Do you want to pay taxes from a 401k account using the account number and routing number as if it was a checking account?  You have to ask your plan administrator.

 

Do you want to withdraw money from a 401k to use to pay your tax?  If you are retired, yes, but the money will be taxed, and subject to a penalty if you are under age 59-1/2, just like any other withdrawal.  If you are still working for the company, you generally can't withdraw from your plan unless you can show a hardship. You have to ask your employer about the rules for hardship withdrawals. 

 

There are no tax benefits or tax breaks for paying taxes from a 401k, it will be treated like and taxed according to the normal rules for any withdrawal.

April 8, 2025

If  you are permitted to take a distribution from your 401(k), you can use the cash for whatever you want, including paying taxes.  It would still be an ordinary distribution subject to taxes and potential early-distribution penalty.

 

If you have taxes withheld from a 401(k) distribution, that tax withholding would apply to your tax liability for the year that you receive the distribution, not some prior year tax liability, and the amount withheld would still be subject to tax and potential early-distribution penalty.  If you want to pay a prior-year balance due, you would have to receive the distribution in cash and make a separate cash payment against your balance due.