The U.S. will likely emerge the winner in a "cold currency war" that is heating up, an expert said.Currenciesread more
These box office numbers do not include the cost of production or marketing costs. They also don't count the billions in merchandising that Disney has made over the last...Entertainmentread more
Tariffs are the only instrument left for addressing China's systematic and excessive surpluses on its U.S. trades, writes Michael Ivanovitch.US Economyread more
In its latest attempt to build market credibility, China on Monday launched the Science and Technology Innovation Board, or "STAR Market," on which 25 companies were listed.China Economyread more
When Cathy Hsu and Tony Hsieh wanted to build an English language app for Chinese children, they decided to follow Facebook and Google's lead.Start-upsread more
Stocks in Asia were lower on Monday, as shares on a new Nasdaq-style technology board on the Shanghai Stock Exchange skyrocketed on their debut day.Asia Marketsread more
Instagram began tests that hide "like" counts on posts. That means influencers who market products on Instagram will have to rely on different metrics to show success.Technologyread more
Peter Neupert worked for Microsoft and Amazon-backed Drugstore.com, where he got to know Jeff Bezos. He now advises start-ups.Technologyread more
The firing of the tear gas was the latest confrontation between police and protesters who have taken to the streets for over a month to fight a proposed extradition bill and...China Politicsread more
Last week shows that oil prices are not the indicator for Middle East tensions they once were, and worries about global demand and growing U.S. production has changed that...Market Insiderread more
Facebook Vice President David Marcus is the face of the company's Libra digital currency, but the original driving force was a 26-year-old female corporate-development...Technologyread more
It's bad enough to tap your 401(k) when you are unemployed. But should you have to pay a 10 percent early distribution penalty too?
Not if a little-known provision buried deep within President Barack Obama's proposed 2016 budget becomes law. The provision would allow those who've received unemployment compensation for more than 26 weeks to withdraw up to $50,000 per year from their IRAs and employer-sponsored retirement plans.
And while experts said the budget is unlikely to pass in its current form, there appears to be bipartisan support for the exemption.
Under the proposal, you would have to withdraw retirement funds either in the year when you received unemployment compensation or the following year.
If you qualify, you can withdraw at least $10,000 from your retirement accounts. If you have more than $10,000 in your retirement accounts, you can withdraw half of your retirement plan balance up to $50,000 penalty-free.
Here's how the exemption would work: If you have $30,000 in your retirement accounts, you can only withdraw $15,000 from your nest egg without paying the 10 percent penalty. You would need at least $100,000 in your retirement accounts to receive the full $50,000 distribution without paying the penalty.
But it will be hard to make up a huge withdrawal from your retirement accounts. You can only contribute $5,500 (or $6,500 if you're 50 or older) per year to an IRA. The contribution limit for 401(k)s is $18,000 this year (or $24,000 if you're 50 or older). Not to mention the potential earnings you might miss by taking out money from your retirement funds.
Many taxpayers under financial hardship have fought the 10 percent early distribution penalty in court and failed to gain relief. "It's just a case you can't win, even though the court often sympathizes with those taxpayers. The law needs to change," says Jeffrey Levine, an IRA technical expert with Ed Slott & Co.
But lawmakers don't want to be seen as adding to the financial burden of the unemployed. That gives Levine hope that the hardship exemption for retirement plans might gain bipartisan support from Congress.