- Bank of America’s data, disclosed on Tuesday, reveals a growing trend of Americans resorting to tapping their 401(k) accounts due to financial challenges.
- According to Bank of America’s analysis of clients’ employee benefits programs, which encompass over 4 million plan participants, the second quarter witnessed a substantial rise in the number of individuals making hardship withdrawals. Specifically, the count of those who engaged in such withdrawals surged to 15,950, marking a 36% increase from the second quarter of the previous year.
- Matt Schulz, the Chief Credit Analyst at LendingTree, expressed concerns regarding this development, stating that if a greater number of people are turning to hardship withdrawals, it could be indicative of a “pretty troubling” situation. This data underlines the challenges individuals are facing as they grapple with financial difficulties.
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‘Troubling’: Workers Tapping 401(K) Accounts At Alarming Rate
FILE - President Joe Biden delivers remarks on the economy, Wednesday, June 28, 2023, at the Old Post Office in Chicago. Biden has long struggled to neatly summarize his sprawling economic vision. On Wednesday, the president gave a speech on “Bidenomics” in the hopes that the term will lodge in voters’ brains ahead of the 2024 elections. But what is Bidenomics? Let’s just say the White House definition is different from the Republican one — evidence that catchphrases can be double-edged. (AP Photo/Evan Vucci, File)
