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401(k) Withdrawal Break for Victims

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Those affected by Katrina will be allowed to withdraw money from their 401(k) plans, free of any penalties. The IRS has decided (and will announce shortly, according to the article) that they are going to allow this. In situations like those that Katrina has wrought upon thousands of people, simple cash or otherwise liquid emergency funds just aren’t enough to allow the victims to fully recover. Allowing easy access to 401(k) funds will certainly help many people through the trying period.

Of course, many of the people affected the worst are poor, and will perhaps not have 401(k)s from which they can withdraw money. Also, you can bet that there will be others taking advantage of the allowance. No solution is ever perfect, but I think this is a very good idea.

Published or updated September 13, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by .

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avatar Mike Hillyer

Hi Flexo, sorry to use comments to contact you, but could you please add your blog to http://www.wealthywiki.com/index.php/Blogs ? Maybe post an article if you have something available?

Thanks,
Mike Hillyer (former wealthy blogger)

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