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Can the IRS take my 401(k)?

Updated October 8, 20262 sourcesTaxTruce teamFact checked
The short answer

Yes. Retirement accounts are on the list of property the IRS can levy. If it does, the 10% early withdrawal tax does not apply to that levy. The IRS usually levies only after a notice of intent to levy and your right to a hearing.

If you pull money out yourself before 59 and a half to pay the IRS, the 10% extra tax may apply.

Words to know

Notice of intent to levy
An IRS notice that it plans to take your property. CP504 is one. LT11 and Letter 1058 give hearing rights.

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