Letter to the editor: Idea to help pay for college: No-penalty 401(k) withdrawals

I’m writing in regard to the March 28 article “$1 trillion student loan debt widens U.S. wealth gap.” I have another idea, in addition to Congress’ debates, to help pay for a child’s education: Why not have the federal government change the law in regard to tapping into one’s own 401(k) retirement account to fund […]

I’m writing in regard to the March 28 article “$1 trillion student loan debt widens U.S. wealth gap.”

I have another idea, in addition to Congress’ debates, to help pay for a child’s education: Why not have the federal government change the law in regard to tapping into one’s own 401(k) retirement account to fund their tuition?

I am not asking for a handout and am OK with paying taxes on the withdrawal. It’s the 20 percent disbursement penalty that gets me. We can take a disbursement for a first-time home purchase, but not for an investment in our children?

I have more than 15 years to retirement, so I’m not worried about having enough money then. I’m worried about college money now.

Dave Wislowski

Gray

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