How Not To Pay Taxes On 401K Withdrawal? 
The only way you can take money out of your 401 -LRB- k -RRB- is to take a loan . A withdrawal will be reported to the IRS and will be considered income . As long as your 401 -LRB- k -RRB- is not closed , you should not be taxed . Be aware however you may be required to repay the loan back with monies taken out of your paycheck . 