401K IRS Penalty Moratorium? [View All]

[blueworld]

My 58-year-old husband lost his job in an auto-supply related industry this week, along with all benefits. We have less than 20K in a 401K. We are happy to have it, and have significantly downsized our lifestyle & choices for years. We believe in living more simply so others can simply live. No hype, truly.

With the economy as it is, every prime job at Wal-Mart will have 75 applicants, and I doubt many 58-year-olds will get those. We're sure he'll find work, but we're also pretty sure it will take a while. We're assuming we'll need that 401K money to help us get through a good portion of the year.

It infuriates me that while the financiers & Big 3 automakers are getting bailouts at my grandchildren's expense, we'll have to pay an "early withdrawal" 10% IRS penalty next year for using money we never would have touched if they (along with others!) didn't force this situation on us!

While the GOP bloviates about irrelevant items like birth control & demands more useless tax cuts for gazillionaires, I'd like to suggest one to the Dems: put a hold on that penalty. Unemployed Americans will be living on those 401K withdrawals during these times! We deserve as much respect & concern as the GOP contributors!

What do y'all think?:grr: