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    jjz's Avatar
    jjz Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 10, 2009, 06:53 AM
    401K Penalty
    My wife and I are getting killed on our taxes this year due to my being unemployed for five months in 2008. We had to pull all our 401K money in order to survive and not lose our house. Now, because of the 10% penalty, we have to pay $7000.00 in taxes. I thought I heard or read somewhere that due to the economic crisis, congress is considering not penalizing people who have to pull their investments/retirement funds. Does anyone know anything about that?

    Thanks in advance,

    JJZ
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Apr 10, 2009, 08:09 AM

    It was talked about but never passed.
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