Tag: 401ks

The brief’s key findings are: As 401(k)s and IRAs have become the dominant source of retirement saving, the potential for pre-retirement withdrawals – “leakages” – has grown. Leakages occur via three channels: 1) in-service withdrawals for hardships or after age 59½; 2) cashouts when individuals leave a job; and 3) loans. Estimates indicate that about…

The brief’s key findings are: Progress in the 401(k) system stalled in the wake of the economic crisis, according to the 2010 Survey of Consumer Finances data. Despite an increase in auto-enrollment, the percent of employees not participating ticked up. And 401(k) contributions slipped, while leakages through cash outs, loans, and hardship withdrawals increased. As a result,…