In today’s sluggish economy, 403B funds serve as unemployment insurance and not retirement funds. Those unemployed with no unemployment insurance to rely on due to the exhaustion of unemployment funds for those unemployed after 26 weeks in California deserve to have their twenty percent federal tax and under age 59 penalty tax waived from 403B funds.
Unemployment remains 7.6 in Glendale, 9.7 percent per a preliminary report for Los Angeles, (not seasonally adjusted) per the December 2013 unemployment rate according to the U. S. Department of Labor Bureau of Labor Statistics Western Information Office’s local area unemployment statistics query tool.
Nationally, the jobless rate has decreased by six-tenths of a percent since October 2013 to 6.8 percent per the Bureau of Labor Statistic’s Economics News Release Report of Feb 7, 2014.
Finding a job after the 2008 crash remains difficult due to mass layoffs that remain prevalent to this day. The middle to lower classes can barely afford to save for the present let alone for the future. This economy no longer supports long term employment. The day when everyone becomes a contractor and buys their own health insurance and pays into their own pension funds for retirement is already here and 403B retirement funds become unemployment insurance funds or rainy day savings for those who can afford them.