We need to offer tax forgiveness for those that had to withdraw or take loans against their 401k that were terminated/laid off/or asked to resign due to Covid-19 and company’s downsizing.
People were already taxed on the money at the time of the disbursement……adding a 20% tax penalty at the time of filing is keeping more Americans in debt.
That 20% tax penalty is because the money you put into your 401K, is a before taxes deduction. they are just trying to get you caught up so you wont have to pay taxes at the end of the year.
You missed the point. You already paid taxes on it when you had it deducted and put into your 401K plus paid interest on it after taking it out.
You’re thinking of a Roth. This is different and pretaxed.