401(k) Withdrawals: Debt Relief Or Financial Suicide?
On behalf of Law Offices of Mark M. Kratter, LLC on October 20, 2011
Connecticut readers may be interested in learning that two members of Congress from Georgia have introduced legislation they say is designed to help some homeowners avoid foreclosure, while also costing the government nothing. The legislation revolves around the right of taxpayers to withdraw funds from their 401(k) retirement accounts for application toward mortgage indebtedness. The proposed law would allow 401(k) funds to be used for certain foreclosure expenses without exposing the individual to the 10 percent federal tax penalty for early withdrawal.
