Owe the IRS or your state at least $10,000 in back taxes, or have multiple years of unfiled tax returns? Book your FREE consultation with Choice Tax Relief by calling 866-8000-TAX (866-8000-829) or booking here: choicetaxrelief.com/free-tax-relief-consultation A viewer owes about $5,000 in back taxes from 2016 through 2019. Should they use their 401(k) to pay it off or set up an IRS payment plan? In this video, I explain the difference between a 401(k) loan and a cash distribution, the potential income tax and early-distribution tax, and why an IRS installment agreement may be another option. I also discuss checking the collection statute expiration date (CSED) on older tax debt before deciding what to do. CHAPTERS 0:00 401(k) or IRS payment plan? 0:20 401(k) loans and plan rules 0:41 Cash withdrawals and potential tax costs 1:43 IRS installment agreements 1:55 Check the IRS collection deadline 2:42 Before paying older tax debt 3:08 Get help with tax debt Important: 401(k)...