457 Hardship Withdrawal
Does the Federal income tax liability qualify as a hardship withdrawal from a 457 plan. This gentleman had to do a hardship withdrawal from his 457 last year because the bank called his loan on new construction, resulting in a huge tax liability.
Permalink Submitted by wayne bronson on Wed, 2009-02-25 12:46
Help
The IRS kept my 2008 tax return because of an ongoing dispute I have with them over a 2005 issue concerning 1099 withdrawal forms.
It WAS an ongoing issue but I guess the IRS just took the money.
IS THERE ANY WAY I CAN GET IT BACK???
Wayne
Permalink Submitted by mk foss on Wed, 2009-02-25 17:06
The rules for 401k withdrawals indicate that a withdrawal as part of the hardship in order to pay the tax on the hardship will qualify. I haven’t seen anything about a withdrawal in a later year to pay the tax.
Permalink Submitted by Alan Spross on Wed, 2009-02-25 19:27
Wayne,
You would have to re open the issue and answer any questions the IRS has. If it turned out you did not owe the back taxes, then they would release any tax refund you had coming.