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.
The survey found a potentially alarming concern that employees were more likely to request a loan from retirement savings (60 percent) or a hardship withdrawal
(44 percent) from retirement savings during the past 12 months compared to previous years.
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.
2%, took a hardship withdrawal
in the second quarter, up from 45,000 in the first quarter.
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.
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.
WASHINGTON -- The Federal Retirement Thrift Investment Board (FRTIB) announced today that it has made temporary changes to the Thrift Savings Plan (TSP) hardship withdrawal
rules to help victims of Hurricane Sandy pursuant to the guidance issued by the Internal Revenue Service on November 16.
you are allowed, under the terms of your governing plan document, to remain employed while receiving an in-service hardship withdrawal
they may be able to borrow or take a hardship withdrawal
from their retirement plans to help.
If a participant takes a withdrawal from the 401(k) plan prior to age 59 1/2, it is subject to the normal tax rate plus a 10% penalty, whether a hardship withdrawal
or withdrawal for any other reason.
Also apply for a hardship withdrawal
, although approval will require review by a plan representative.