[Doulos1]

Question, how can you get out of 401 without taking a hugh loss due to the penalty placed on it for early withdraw by the gov’ment?

[EVO X]

google 72t

[Fred]

Gradually convert it to a ROTH. When you convert to a ROTH you have to pay the income tax on the amount moved for that year. As you can tell, I am an ancient freeper and we old timers have had this discussion during the Clinton reign of terror. Jesse Jackson has been floating this ripoff for years. So, being a PROACTIVE freeper and not a complainer, I have taken full advantage of the ROTH. I have been moving my 401K to a ROTH and just completed the process last year. Of course, I had to do the move based on having the money to pay the income tax.

Also, ROTH money can be withdrawn without penalty on principal after 5 years and the interest without penalty after one is 59 1/2 see https://calcsuite.fidelity.com/rothconveval/app/launchPage.htm

So, worse case scenario in my case, is getting hit with the 10% on the interest if and or when the jackbooted thugs come to burn me.

A new feature in the 401K about 2 years old is the ROTH 401K. Ask you pension dude if your 401k has this feature.

Senator Roth was the man behind this brilliant legislation. He knew sooner or later we were going to have this problem
http://en.wikipedia.org/wiki/William_V._Roth,_Jr.
RIP Senator, you earned it.