The U.S. federal government will, for a period of no less than 90 consecutive days prior to April 15, 2001, either: 1) ban premature distributions (sometimes called early withdrawals or early distributions) from Individual Retirement Accounts, 2) require a waiting period of 90 days or more between the date of request for a premature distribution from an Individual Retirement Account and the date on which the assets withdrawn are made available to the requestor, or 3) increase the additional (penalty) tax on a premature distribution from an Individual Retirement Account to a rate of 30% or more.
This claim refers to Individual Retirement Accounts, which are one, but not the only, type of Individual Retirement Arrangement.
For purposes of this claim, "Individual Retirement Account" has the meaning defined in IRS Publication 590, Individual Retirement Arrangements (IRAs); Chapter 2 - When and How Can an IRA Be Set Up?, "Kinds of IRAs", "Individual Retirement Account" as of July 1, 1998.
As of July 1, 1998, the additional tax on premature distributions from Individual Retirement Accounts is 10%.
Notes: This claim refers to a potential US government action to prevent a run on banks. It is one of many emergency actions the US government might use to cope with effects of Year 2000 (Y2K) computer problems. However, no part of the claim depends on whether a Y2K problem occurs or whether any of the events listed in the claim description is related to a Y2K problem. The claim owner expects that, for various reasons, people and organizations will be reluctant, or refuse, to admit that Y2K problems are among the causes of or reasons for some events.
References:
"A Glitch in Time"http://www.salonmagazine.com/21st/books/1998/03/cov_02books.htmlEdward Yourdon mentions possible IRA withdrawal prevention and penalty in the middle of page 3 of this article.
IRS Publication 590, Individual Retirement Arrangements (IRAs); Chapter 2 - When and How Can an IRA Be Set Up?, "Kinds of IRAs", "Individual Retirement Account"http://www.irs.ustreas.gov/plain/forms_pubs/pubs/p5900201.htm
IRS Publication 590, Individual Retirement Arrangements (IRAs); Chapter 6 - What Acts Result in Penalties?, "Premature Distributions (Early Withdrawals)" http://www.irs.ustreas.gov/plain/forms_pubs/pubs/p5900603.htm
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