Here are some interesting facts from a Forbes article by Janet Novak called "Money Traps."
Americans hold $6.5 trillion in IRAs, 401(k)s, and other retirement accounts ... and they can be a tax trap.
The Internal Revenue Service estimates that on 2003 returns, 4.9 million taxpayers paid $3.4 billion in retirement account penalties. Sad thing is this probably is going up as more and more people move into their retirement or try to access their money because of tough times.
IRA, 401(k)s, and other retirement accounts have many strings attached. But what's most shocking is the amount of fines and taxes you may receive for not knowing all the rules. It's truly a sad day when families and individuals lose funds they were counting on for a passive income for later years in life.
That's why we recommend looking at how a 101 plan may be the right plan for you. A 101 Plan is a special kind of dividend paying cash value insurance policy. It can help you avoid many of the tax traps with other plans ... plus it gives you access to your money at any time. If you would like to know more about a 101 plan and how it may be right for you, click here.
Watch The Truth About 401k's Now