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IRAs, 401(k)s and Mortgages

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If part of the current financial crisis is the accelerating rate of foreclosures on home loans, wouldn’t it make sense for Congress to allow withdrawals from IRAs and 401(k) plans without triggering the taxation that ordinarily accompanies early withdrawals if the withdrawals were used to pay mortgages? The biggest asset most people own is their home, and the use of the retirement funds to keep those homes or pay down the debt on them seems obvious.

I’d appreciate arguments pro or con on this thought, via hugh@hughhewitt.com.

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