Early Withdrawals and Required Minimum Distributions in Retirement Accounts: Issues for Congress

Topoleski, John J.

Library of Congress. Congressional Research Service.

关键词: Retirement;    Retirement income;    Individual retirement accounts;    Pensions;    Taxation;   

RP-ID  :  R40192
RP-ID  :  R40192_2011Jan07

美国|英语

来源: UNT Digital Library

【 摘 要 】

In response to the economic downturn, Congress considered providing relief to Americans by suspending two tax penalties on defined contribution retirement plans and Individual Retirement Accounts (IRAs). This report discusses the reasons offered in support of suspending these provisions, as well as the drawbacks. This report also presents data that estimates the number of households that these proposals would impact. Borrowing from retirement plans as an alternative to withdrawals is also discussed. Finally, the report discusses the kinds of proposals offered to either suspend or eliminate the early withdrawal penalty or the required minimum distribution provision.