AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 1/10/2008 Subject: Taxes on Pension Plan Withdrawl
Question I became separated from my employer in 2007 and have an opportunity to withdraw money that they contributed to my retirement. The ? is do I have to pay the taxes and early withdrawal penalty at the time of withdrawal or can this information be reported on my income tax return?
Answer They will withhold 20% at the time of the distribution. You will pay the remainder of tax and penalty when you file your return. Be careful you do not spend it all and not be able to pay at tax time. That could make an already expensive proposition even more costly.
