Penalties on IRAs and 401(k)s

Research Report

Penalties on IRAs and 401(k)s

August 15, 2005

Abstract

The leading policy goal for 401(k)-type plans and Individual Retirement Accounts is to help families accumulate wealth for retirement. Given this objective, policy-makers have created tax penalties for either withdrawing funds too quickly or too slowly. This Tax Fact explores these tax penalties, and shows that the share of all returns with a penalty has risen steadily over the past decade.

Research Area: 
To reuse content from Urban Institute, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.