I'm glad the government sets taxes on 401K withdrawls so high.

20% to be precise. If you want a cash payment for your 401K value after you leave your job, it will cost you 20% of your 401K.

I'm personally glad that the tax is so high. Forcing me to save for retirement is a great thing. Now if I could only invest such a tiny amount in a great fund. For the irony.


Graduate School Abroad? There is a student loan tax...

Hop on over to the FAFSA website of school codes at:


and try running a search for *any* foreign school. Notice something odd? Lots of prestigious foreign institutions aren't listed: University of Kyoto, EPFL, TU Delft.

If you have undergraduate loans left and decide to return to grad schools, you cannot defer this loans for most overseas institutions. For every 1,000 you have at 5%, you're losing about $180 if you decide to go overseas. Have $20,000 in loans? You're looking at $3,600 of additional debt because you decided to go overseas. Note that you are losing roughly this same amount of money if you don't appropriately defer your loans upon returning to graduate school.

I'll save why I think the US DOE decides against appropriately accrediting overseas institutions for a later post.