We need to add an exception to the tax codes for individuals who have been laid off since 2008, that they can use their retirement savings, tax and penalty free, to start of buy a business.
Why is this important?
Due to this recession, so many laid off workers are using their retirement savings to buy or start their own businessess. But there is no exception in the tax code for this. You can roll the funds over to the Stock Market (big business), but not your own business. Not only will the funds taken out be subject to income tax, but an additional 10% penalty as well. This needs to be changed NOW!
