(MONEY Magazine) – I agree with your December Editor's Notes: The congressional law requiring a 20% withholding tax on payouts from certain pension and annuity plans deserves a fast repeal. It is unfair, because I am sure there are people who are forced to take out the money to cover expenses after being unemployed. I know because I've been out of work since January 1992 owing to the reduction in the defense industry. I am faced with either selling my home or using my retirement funds to pay the mortgage. Name withheld Gilroy, Calif.

I would rather have someone put a gun on me and stick me up. At least they would have the decency to say openly: ''You're being robbed.'' Beatrice Walker Memphis

I am withdrawing proceeds from a retirement account in order to form a new business. Because of this new 20% law, monies that could have helped me establish the new business will be withheld one year in advance, without interest, until my tax return is filed in 1994. Edith McGraw Florissant, Mo.