Galvin: Suspend penalty on 401(k) withdrawals

Massachusetts Secretary of the Commonwealth William F. Galvin today called on Congress to temporarily suspend the 10% penalty tax on early withdrawals from 401(k)s.
SEP 23, 2008
Massachusetts Secretary of the Commonwealth William F. Galvin today called on Congress to temporarily suspend the 10% penalty tax on early withdrawals from 401(k)s. Mr. Galvin said many people have been forced to dip into their retirement plans, and have unwittingly become subject to the penalty. “My office has observed that these retail investors and savers frequently lack good information and advice,” Mr. Galvin said in a statement. Given the proposed $700 billion bailout of financial firms, he said, “it would be unjust to deny” tax penalty relief to small investors.

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