penalty

L1: penaltyIs there a site where I can get in touch with other retiree’s under 59and 1/2 who are upset that the gov’t would penalize us for enjoying are hard earned money for early retirement. I’m not opposed to paying the regular taxes on the monies I use but being penalized 10 percent for using my own money seems wrong I have written to my senators but have gotten no reply if we can get enough people involved maybe we can change this rule.2009-12-22 15:50, By: buzzles, IP: [72.226.122.31]
L2: penaltySorry. I know of no such website. While there are exemptions to the 10% penalty tax, they are somewhat limited – it could be worse, there could be no exemptions.>>I have written to my senators but have gotten no replyThey don’t actually listen, they just pretend to listen and members of the House are no better.If they don’t listen on Health Care, Cap-N-Trade, etc. what makes you think that they will listen on something that would reduce their revenue. They would probably be more likely to raise the penalty than to lower it. 2009-12-22 16:34, By: Gfw, IP: [216.80.125.206]

L3: penaltyI think the chance of any permanent penalty relief is slim and nil. Since retirement savings receive tax benefits including deferral and current deductions, there almost has to be penalty if the funds are used before retirement age or close to it (59.5).Now there might have been an emergency provision passed for a year or two in connection with the recession and unemployment or foreclosure avoidance etc, just to temporarily give taxpayers a break, but even that was not done. Therefore, I expect there will be a need for 72t plans for an indefinite period should taxpayers need to tap retirement funds prior to 59.5. Since there is a min 5 year term for these plans, Congress is saying that you can take out your money, but we do not want you doing it for short term or one shot needs. You must have a consistent need for the funds and therefore, the min 5 year term exists for these plans.2009-12-22 21:51, By: Alan S., IP: [24.116.165.60]