Ask Terry Questions Money withdrawn from Schwab 401k account to pay 2023 Federal Income taxes. IRS 9

Money withdrawn from Schwab 401k account to pay 2023 Federal Income taxes. IRS 9

By Terry Savage on June 25, 2024 | Wild Card

How can I find the right person in the Schwab Co. to communicate with the IRS to solve the my problem of the missing $10,000 dollars withdrawn from my 401K was actually sent to the IRS? I now have interest due for the money not paid to the IRS – date on transaction was 10/18/2023. Why can’t the IRS find the transaction from Schwab? How can I have Schwab communicate with the IRS and resolve this.

Terry Says

Whoa — this is either going to be very simple — or VERY COMPLICATED.

Are you able to look at your account transactions online?  If so, you can see on what date the $10,000 was withdrawn.  And where it went.   Perhaps the money was never taken out?   There is a record of every withdrawal and where it was sent.

If the money came from your 40l(k) and you are still working at the company, then you should start with your HR department to get help tracking it down.  If you are retired, you should call Schwab directly and explain your problem.  If money was taken out, they will be able to track it down.  And they can tell you exactly where it was sent.

If no money was removed, and they can show you that, then you’ll have to deal with the IRS to pay the amount they demand.

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