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Points

ELIMINATE 401k WITHDRAWAL PENALTY for 2009

The market has collapsed, significantly reducing the value of the 401K plans and many have lost their jobs....meaning many will likely need the funds in the 401K plan.  Suspending the withdrawal penalty for 2009 will make it more attractive to cash out the plan, freeing up much needed funds to pay debts (especially mortgages), and purchase consumer needs (like automobiles).
2 Comments  »  Posted by Shereddevil to Additional Issues on 1/13/2009 6:27 AM

Comments
 
rural populist
1/13/2009 6:37 AM
I agree. Let people withdraw their money from 401k plans without penalty. This may help stimulate the economy. There would be no loss of tax revenue. 
 
PrismPrez
1/13/2009 6:14 PM
We need to do everything possible to push this through. Even after the market collaspe there is still 6 Trillion Dollars in 401k plans.  This could potentially be a 3 Trillion Dollar stimulus plan paid for by individuals and not tax payers.
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