From Bloomberg Visual Data:

The IRS collected more than $5 billion in 2011 from penalties incurred by taxpayers who withdrew money from tax-deferred retirement accounts before the age of 59 1/2. The people who pay the penalty include younger workers who switch jobs and don’t bother to roll over their accounts and older workers who believe they have no place else to turn.

Source: Bloomberg Visual Data

Category: 401(k), Digital Media, Really, really bad calls, Taxes and Policy

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

6 Responses to “Tapping Your 401(k) ?”

  1. BennyProfane says:

    There’s going to be an awful lot of old people mired in poverty soon. It’s probably already happening in the shadows, but will accelerate with the Boomers turning 65 at a rate of 10,000 a day.

  2. Iamthe50percent says:

    Both age groups probably need the money to survive. I know I did when I lost my job. I tried to avoid it. I sold all the taxable stock first. I borrowed to the hilt. I cit expenses to the bone. But as the months rolled into years, it was necessary to start liquidating the IRA to avoid missing mortgage payments.

    Don’t be quick to assume that people who withdraw are profligate, especially with the euphemism, “changing jobs”.

  3. 4whatitsworth says:

    Just trust the government and don’t worry about yourself it will all be ok..

  4. mpappa says:

    What I tell young people. That new 10K deck really cost you $160,000. Their puzzled look is priceless.
    10K @ 7.12% is 20K in 10 years, 40K in 20, 80K in 30, and 160K in 40.

    • LeftCoastIndependent says:

      Where are you getting 7.12% may I ask ? But I totally agree with your take on youngsters spending money that they don’t have.