Levels of hardship withdrawal
activity also were low, with only 0.
Davidson says companies providing financial wellness programs continue to see a reduction in the percentage of employees who reported having to take a retirement plan loan or hardship withdrawal
, coming in at 23 percent in 2015, down from 30 percent in 2013.
The survey also uncovered this alarming fact: Employees were 60 percent more likely to tap their retirement account for a loan than in previous years, and 44 percent are more likely to ask for a hardship withdrawal
from retirement savings.
levels likewise were low during the first nine months of 2013: Just 1.
51 percent of employees reporting overwhelming financial stress have taken a loan or hardship withdrawal
from their 401(k) plan.
Fifty-one percent of employees reporting overwhelming financial stress have taken a loan or hardship withdrawal
from their 401k plan, putting them at risk of not being able to achieve retirement security.
Younger Americans, especially those who are 34 and under, are more likely to show signs of financial stress, including taking a loan or hardship withdrawal
from their retirement account or making late mortgage payments.
2%, took a hardship withdrawal
in the second quarter, up from 45,000 in the first quarter.
The plan administrator has provided summary plan descriptions to participants that accurately describe eligible compensation, contribution limits, service crediting rules, investment election procedures, the investment funds available under the plan, and hardship withdrawal
and loan rules.
GAO was asked to analyze (1) the incidence, amount, and relative significance of the different forms of 401(k) leakage; (2) how plans inform participants about hardship withdrawal
provisions, loan provisions, and options at job separation, including the short- and long-term costs of each; and (3) how various policies may affect the incidence of leakage.
For example, safe harbor employer contributions are not eligible for hardship withdrawal
The Internal Revenue Service (IRS) allows two other methods for removing money from your 401(k) plan account before you retire: 1) a qualified hardship withdrawal
and 2) a loan.