Penalty-free 401(k) penalty withdrawals still not on the agenda, and taxes are due next week

[apr09]

Excerpt:

"Penalty-free withdrawals weren't included in the economic stimulus bill that became the American Recovery and Reinvestment Act. Nor were they part of Obama's budget outline, which Congress approved on April 2, 2009. It doesn't appear that any member of Congress has introduced such a measure. Everyone we've asked about the idea says it's not going to happen."

link

[MadHound]

1. First off, why the hell are you linking to a scam, spam spyware site?

Secondly, find another link where this administration promised penalty free withdrawls from your 401k.

[apr09]

2. There are tons of other links. And how is that a scam, spam spyware site?

CBS, October 2008: "(Obama’s plan includes providing companies who create new jobs a temporary tax credit, as well as allowing penalty-free withdrawals from IRAs and 401Ks."

http://www.cbsnews.com/blogs/2008/10/13/politics/fromtheroad/entry4518328.shtml

Here's the Huffington Post in November 2008:

"Obama also proposed a $1,000 emergency energy rebate to families and penalty-free withdrawals of up to $10,000 from 401(k)s and IRA's."
http://www.huffingtonpost.com/huff-wires/20081105/promises-promises-obama/


http://www.cbsnews.com/blogs/2008/10/13/politics/fromtheroad/entry4518328.shtml

This work of this political website has been quoted in the NY Times: http://www.nytimes.com/2008/09/18/us/politics/18web-seelye.html?pagewanted=print

And there are numerous links: "Obama’s plan includes providing companies who create new jobs a temporary tax credit, as well as allowing penalty-free withdrawals from IRAs and 401Ks."

Here

[Dawgs]

3. Are you suggesting that penalty free withdrawals is a good idea?

I hope not.

[apr09]

4. Obama thought it was a good idea

Late in the the campaign, and he proposed it as a means to fight the recession. Only a few months later the stimulus draft package was drafted without it.

What changed the President's mind?

[SammyWinstonJack]

5. What changed the President's mind? Wall Street?

:shrug:

[apr09]

6. Also, what about those who withdrew expecting to get a tax break later?

What if some workers withdrew money in 2008 counting on the prospect that these withdrawals would be tax free once they filed taxes in April 2009?

From the article:

"But people across the country are preparing their taxes right now, and if they took money out of their 401(k) before retirement in 2008, that penalty will be there staring them in the face."

[Doremus]

7. Why should someone unemployed be penalized for using their own money?

Having your income drop 60% or more overnight presents a litany of obvious problems. Add an unexpected illness or some other calamity and the possibility of homelessness becomes a distinct probability. People tapping into their 401ks to survive should not be penalized.

Yes, it is a good idea and it's too bad it was dropped. Score another one for the bankers.