Posted on 05/20/2011 9:28:19 AM PDT by Libloather
Broken Piggy Bank: 'Leaky' 401(k)s Worry Congress
By ALAN FARNHAM
May 20, 2011
Americans in record numbers are raiding their 401(k)s, depleting their retirement savings to compensate for paychecks and mortgage equity lost to the recession. As employers and savings plan providers struggle to stem the outflow of money, two senators have introduced legislation that would make it both harder for employees to dip into company-sponsored retirement savings and easier to repay their borrowings.
The SEAL Act (Savings Enhancement by Alleviating leakage in 401(k) Savings) introduced by Sens. Herb Kohl, D-Wis., and Mike Enzi, R-Wyo., would reduce to three the number of loans an employee could take against a 401(k). Savers currently can take as many loans as they think they can handle -- or as many as their employer may permit.
The bill would ban products that promote savings depletion, such as debit cards linked to 401(k)s, and it would make it easier for consumers to repay monies borrowed. According to a new study by consultants Aon Hewitt, some 28 percent of active participants in 401(k) plans had an outstanding loan in 2010, up from 22 percent in 2005.
(Excerpt) Read more at abcnews.go.com ...
“You have to break a few eggs to make an omelet.”
These are politicians we are talking about..
The weasles are getting ready to feed on the nest eggs...
“You have to suck a few nest eggs to feed a weasle”
Yeah, it’s your business, if you subscribe to the idea that you know better about making decisions in your own life than some elitist in the government.
Unfortunately, the elitists believe the exact opposite.
This is exactly WHY there is a dichotomy in the political arena.
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