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.