Stimulus Bill Write-Up?

[austin3515]

Anyone have a good write-up on the stimulus bill as it affects 401ks? Just got a call from a client regarding the "penalty free withdrawal" provision that seems to have made its way into the bill.

[Jean]

This is not part of the stimulus, and it does not exist as of yet. It is an item that the administration wants (wanted?) to make available, but not necessarily in the stimulus.

[Guest JPIngold]

This is not part of the stimulus, and it does not exist as of yet. It is an item that the administration wants (wanted?) to make available, but not necessarily in the stimulus.

I just had a client ask me the following: "I understand that the stimulus package changed some of the rules surrounding taking money from your 401K."

Has there been anything new on this? Maybe my head has been in the sand, but I never heard anything that opened up because of the stimulus package.

[masteff]

Perhaps they're remembering sound bites from before the final legislation was passed or they're thinking about minimum required distributions for participants age 70.5 and older being waived for 2009 (to the extent not otherwise obligated by plan language).