How to Responsibly Raid Your Retirement Account
Like it or not, a 401(k) loan may be in your future
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People saving for retirement are often told they should never, ever touch the money in their 401(k)s. They’re not listening. Americans prematurely take at least $57 billion per year out of their retirement plans, Bloomberg News calculated last year. In the process, they’re paying early withdrawal penalties of 10 percent, while also robbing themselves of decades of investment gains and future income in old age.
To stop the bleed of assets, a group of retirement experts have come up with a counterintuitive strategy: Make it easier to borrow from retirement accounts.