Liquidating your 401k account
The IRS has that long to try to collect on back taxes, and no more.Under some circumstances, the statute of limitations may be suspended temporarily.The editorial content below is based solely on the objective assessment of our writers and is not driven by advertising dollars.However, we may receive compensation when you click on links to products from our partners. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired.In addition, the statute of limitations does not apply when the taxpayer willfully tries to evade taxes, files a false return, or fails to file.In most cases, however, I would question whether any tax debt from over 28 years ago is collectible.If the tax debts belong to your husband, and if you qualify for the loan yourself, you may be able to at least move on with that part of your life. I recommend you tell your husband and the tax guy that you do not want to withdraw from your 401(k) plan to pay for dental work or credit card debt. When people use their retirement plans for every expense or shortfall that comes along, they’re likely to end up with nothing when they reach retirement age.Be sure to get qualified, professional tax advice before you, your husband or both of you take as drastic a step as filing an OIC.
My husband needs major dental work, and I have some credit card debt.
Tax problem resolution is a specialized field, and not every tax guy can give you the best advice.
If your husband has few or no assets, and most of the tax debt belongs to him and is still collectible, filing an OIC may help him resolve the debts.
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Dear To Her Credit, My husband and I owe over ,000 in back taxes to the Internal Revenue Service.