I heard that Obama will waive the penalty for the 1st @10k withdrew from your 401k for 08 and 09? Is that true?

Where did you hear this whopper?

Good question, it was during the campaign and I can't recall if it was a friend or on the news. I have done some research online and could not find anything. I hope someone out there heard the same thing and can confirm that.

No, that's not the case. What Obama -- and others on Capital Hill -- have suggested is passing a provision as part of the next bail out bill that would waive the mandatory distribution requirement for those 70 and older. The reason being that the market has taken a dump, so they don't want people to have to jump out of the market at this time.