Reported about 14 hours ago
A rising number of Americans are tapping into their 401(k) savings early to meet immediate financial challenges, with 4.8% doing so last year, the highest rate recorded. Factors like inflation, increasing medical costs, and home mortgage payments are driving these withdrawals, despite low unemployment and rising wages. Enhanced automatic enrollment in retirement plans and relaxed regulations for accessing funds have also contributed to this trend. Although early withdrawals come with taxes and penalties, overall 401(k) balances have grown, as more people are relying on their retirement accounts as emergency funds.
Source: YAHOO