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401(k) withdrawals: expensive money

June 11, 2009

Tempted to tap your 401(k)? Listen to the Wandering Tax Pro first:

Your 401(k) or traditional IRA or any other pension or annuity plan should be the very last place you turn to get cash for any reason – pretty much just before visiting the local loan shark.

Why? That cash is sitting there, after all, and I want some!

... depending on your various tax brackets, when you take money out of these types of plans you will be giving up to half of it to the federal, state and, in some cases, local governments!

Read the whole thing.