Cash-strapped Americans raiding their 401(k)s

[flashl]

Raiding 401(k)s

Despite potential tax and investment problems, more investors have been borrowing from their 401(k) plans or taking hardship withdrawals in recent months, some retirement plan providers say.

Many in the field expect more borrowing in 2008, as consumers struggle with tighter credit and potentially higher mortgage payments.

"I don't think it's a groundswell but it's enough to be noticed," said Rick Meigs, president of 401khelpcenter.com, which provides information on 401(k) plans.

Increased borrowing on 401(k)s could be because of the credit crunch and slumping housing prices. To be sure, the indications are preliminary; it's too early to say why it's happening, according to the Hartford Financial Services Group.

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[Selatius]

1. It's not to early to say what's happening. What's happening is people are getting fucked.

At the same time, senior executive compensation is seeing a dramatic increase. Somebody's losing fucking ground here.

[flashl]

5. Agree

I'm not buying "if you are more financial savvy" you'll understand times are not bad story.

[WCGreen]

2. I'm a trendsetter...

We had to bust into ours about four years ago when a job loss came on top of a disabling illness...

[FightingIrish]

3. We're spending our "Clinton" nest egg to pay for

all we've lost in the Bush years.

[madrchsod]

4. i`ve cashed in mine three times do to job loss

really sucks not to have nothing saved up for the rest of my life