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General Discussion => Welcome and General Discussion => Topic started by: Beowulf on October 24, 2014, 06:46:21 PM

Title: Combating a Flood of Early 401(k) Withdrawals
Post by: Beowulf on October 24, 2014, 06:46:21 PM

The title is pretty self explanatory.  Lots of people are taking money out of their 401k's early.
http://www.nytimes.com/2014/10/25/your-money/401ks-and-similar-plans/combating-a-flood-of-early-401-k-withdrawals.html?action=click&contentCollection=Business%20Day&region=Footer&module=MoreInSection&pgtype=article

Title: Re: Combating a Flood of Early 401(k) Withdrawals
Post by: Mr. Frugalwoods on October 24, 2014, 07:40:13 PM

Anecdotally, it sure seems that the job-hopping that is increasingly common is a factor.

 I have a lot of friends that took the cash from their 401k when switching jobs.  They only had 1-2 years of contributions in there, and most of them "needed" it for relocation or other life expenses surrounding a job change.

The article notes that people "don’t see the balance as being big enough to matter."  Which also rings true with my cohort of 30 something professional friends.