We are experiencing the worst economic times since the Great Depression. People are unemployed for longer time periods than ever before. People are losing their homes. They are losing health care coverage. They are exhausting their life savings. They are accessing their retirement savings just to survive these times.
And our government's response?
Let's kick 'em when they're down!
When you request an early withdrawal from your retirement plan, the government fines you a 10% penalty. That's on top of the normal income tax you'd pay on the amount of the withdrawal (Your contributions weren't taxed going into your account, unless it was a Roth IRA). A 10% Penalty!
I agree that during normal times you should not tap your retirement savings. But these are not normal times. We are talking about survival.
This shouldn't be about politics. This should be about common decency. For the government to take an additional 10% penalty on people that are experiencing hard times is simply unconscionable.
Please write your congressman and senator to ask them to stand up for common decency.
Don't kick people while they are down.