Tax Court Reminds Us That You Should Never Toy Around With Your Retirement Account

As a tax advisor, few things should frighten you more than asking a client how he intends to fund his latest endeavor, only to have him or her respond, "I'll just take the money out of my IRA/401(k)/ annuity." The reason is obvious: the rules governing retirement plans are fraught with peril; with one misstep, your client may be exposed to a bevy of unanticipated taxes and penalties.