4.8: IRA and 401(k) Withdrawal Penalties

Penalty-free hardship withdrawals from IRAs and 401(k)s in 2008 and 2009.

Other Information:

Many families are going to be facing unique economic hardship over the coming year. To help these families pay their bills and their mortgages and make it through these tough times, Obama and Biden are calling for legislation that would allow withdrawals of 15% up to $10,000 from retirement accounts without penalty (although subject to the normal taxes). This would apply to withdrawals in 2008 (including retroactively) and 2009.

Indicator(s):

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