10% Penalty on IRA Distributions...

[Baditude]

If you want a retirement account that can borrow or distribute prior to retirement look at a ROTH IRA all money is after tax and you must wait 5 years before touching, after that there is no penalty and no tax on contribution amount. Tax on earnings treated as normal capital gains I had to do this last year.

 

[seedubs1]

Roth really is a great investment tool. I find it odd that so many people seem to not know about it. My wife and I have maxed ours out since we graduated.

 

[maansmit]

Loans from 401k plans are capped at the lesser of $50,000 or 50% of your vested account balance.