# @loganallec on YouTube

- **Type:** Video
- **Original URL:** https://youtube.com/watch?v=I2rIvthu5yQ
- **Gondola URL:** https://gondola.cc/posts/71476708-loganallec-youtube
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/postThumbnails/1cc9212f34.jpg
- **Posted:** 2026-10-11T08:48:45.000+00:00
- **Account Owner:** Logan Allec (@loganallec) — https://gondola.cc/loganallec

## Caption

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:
https://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) withdrawal and loan availability depend on your plan and circumstances. Exceptions to the 10% early-distribution tax may apply. Guaranteed installment agreements have additional eligibility requirements. The IRS collection period generally runs from the assessment date, and certain events can suspend or extend it. A tax year alone does not tell you when a debt expires.

IRS RESOURCES
401(k) distribution rules: https://www.irs.gov/retirement-plans/plan-participant-employee/401k-resource-guide-plan-participants-general-distribution-rules
Retirement plan loans: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-loans
Payment options and guaranteed installment agreements: https://www.irs.gov/taxtopics/tc202
IRS collection deadlines: https://www.irs.gov/filing/time-irs-can-collect-tax

For general educational purposes only. Your options depend on your circumstances.

#401k #TaxDebt #IRSPaymentPlan

## Stats

- **Views:** 267
- **Likes:** 7
- **Shares:** 0
- **Comments:** 1

## Tags

irspaymentplan, taxdebt, 401k

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