Yeah, do a payment plan. Scrub your budget and see how you can cut your expenses. Google Dave Ramsey - he has good suggestions for bare bones budgeting that will help you pay off your debt and get to a more positive cash flow.

I'd do a payment plan--it will end up costing you less than all the additional penalties and taxes. Stop eating away at your retirement funds!

I took a premature distro from my IRA last year.

I thought I calculated enough money for the taxes and penalty, but am about 10K short.

I am wondering if I should either 1. take a second distro out to pay it or 2. setup a payment plan with the IRS.

I don't have a lot of extra money around to make monthly payments to the IRS, so it will probably be a long term repayment to them. I make < $100K and have only a few hundred left over each month to save/use after bills.

Vs,...taking out another distro and calculating it correctly for next year.

I'd prefer honest recommendations.

Thanks.