401k Reform - Early Withdrawal Penalty

[Scott F.]

I just read in today’s WSJ “Retirement Bills in Congress Could Alter 401(k) Plans” that Rep. Brady is working on a bill in the House (as is the Senate) on reforming 401(k) plans, to include access to the funds. I support this reform and asked my represnentatives that the early withdrawal penalty (10%) be removed. It is age discrimination, plain and simple. Tax it at ordinary income tax rates, that is fair, as after all, the contribution was tax deferred, but to then take an additional 10% is unfair. Why can’t I use those funds to invest in a business, real estate, or other vehicle? Early in my career, 401(k)’s were the only investment vehicle I knew, but now I’d like to do other things with the funds. Can’t we trust Americans to manage their own money? If not, why have a 401(k) at all and not entirely rely on social security?

Contact your representative and senator and ask them to get rid of the early withdrawal penalty.

https://www.wsj.com/articles/retirement-bills-in-c...