Instead of people getting penalized with a Tax Penalty from Government for withdrawing their 401(k) monies too soon for emergencies, the Tax Penalty should be replaced with dividends-based and Certificates of Deposit based Retirement Annuities as a penalty that the early withdrawers would get a return when they are supposed to retire as monthly payments in benefits. Also, the Tax Penalty being turned into a second or third round of FICA tax that goes towards early withdrawers’ Social Security, unemployment insurance and Medicare, could be a return investment for those Americans who feel more comfortable opting-in for Social Security and Medicare instead of George W Bush and CNBC salesmen dictating to us what they want our monies to go towards.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s