Q:
What will happen if Congress and the president fail to extend the payroll tax cut that expires at the end of February? Will my paycheck immediately go down by 2 percent?
A:
Yes. If the cut is not extended beyond February 2012, the employee portion of the Social Security tax will go from 4.2 percent of wages (up to $110,100 for 2012) back to the previous rate of 6.2 percent.
— John E. Pinkley
Q:
My wife and I are teachers, and we both have 403(b) accounts and Roth IRA accounts. If we retire at age 53, what is the penalty for withdrawals from the Roth?
— J.H., 46,
