Whose idea was 10 percent penalty?

0

Q. I cannot find the origin of the law, rule or whatever the decision process was to subject monies withdrawn from 401(k) and retirement funds to the 10 percent penalty if one has not reached 59½ years of age. Was this legislated? Was it an Internal Revenue Service decision? How did it come about?

A. This question falls outside the scope of this forum. You should pose it to a legal historian.

Share.

About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

Leave A Reply