[Dog Gone]

But how do you get your money OUT of a 401(k)? That's the issue. Do you withdraw it as income, or is somebody handing you actual stock certificates (when the time comes that you are eligibile.)

I do not believe there is any way to make a withdrawal from a 401(k) in anything other than cash, nor do I expect that requirement to change.

However, depending on how long you've been working, you may have other sums in your account that are treated as post-tax dollars, and those will receive a different tax treatment (they won't be taxed) when you withdraw them. It's not a big deal to lump any future dividend payments within those accounts into that same "tax-free" status.

I haven't seen the text of the President's speech, but apparently he didn't mention this aspect at all. In any event, these are the kinds of details that would necessarily be addressed in the legislation to be introduced.

[muawiyah]

Since so many tens of millions of Americans have their sole link to the capital markets through their 401(k) plans, the fact that this issue was not brought up means that the reform is not intended to benefit them in any way at all.

Which means, of course, that we here at FR need to start leaning on our Senators and Representatives to get ourselves included in this latest piece of federal largess.