Posted on 01/18/2024 10:24:25 AM PST by yesthatjallen
Studies by both Bank of America and Fidelity showed a disturbing trend last year: Hardship withdrawals and participant loans from retirement plans increased, likely due to inflation and the rising cost of living. Bank of America’s 2023 Participant Pulse found the number of participants taking hardship distributions increased by more than a third year-over-year, following increases in Q1 2023. Further, the report showed more participants borrowing from their workplace plan in Q2 (2.5%, an increase from 1.9% in Q1 2023). The good news is that both B of A and Fidelity’s research found most employees were maintaining – and even increasing — their contribution levels, a sign that a well-funded retirement is still a priority for many plan participants.
With the increase in hardship distributions and participant loans, plan sponsors need to understand their responsibilities for overseeing and tracking these activities. Even if you rely on a third-party administrator or delegate administrative duties, plan sponsors are ultimately responsible for meeting the IRS’s guidelines for reporting these activities.
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(Excerpt) Read more at savantwealth.com ...
Thats Bidenomics!
Warren E. Buffett — ‘It’s only when the tide goes out that you learn who’s been swimming naked.
I am beginning to think this is part of their plan.
The RATS fought 401k plans to the max and the Uniparty has worked hard to put limits on it since it was setup under Reagan.
Deplete 401k plans and we are back to 1979
the Left believes in equity, everyone poor. (It’s too hard to make everyone rich)
Get used to the lower standard of living. These dollars are not going to be worth squat
Does the IRS care if an early withdrawal is due to hardship? Is it something you can report on or put in your filings? I know a few that didn’t want to withdraw and probably won’t make the 60 day grace period to replace the funds(I have been told there is a 60 day grace, please don’t quote me if right/wrong)
IIRC, there are different rules if you are over 59.5 years old compared to younger.
They have threatened to nationalize 401k’s before haven’t they? For the people of course.
“ Does the IRS care if an early withdrawal is due to hardship?”
I’m not sure, but I think it has to do with deferred taxes. If you have to withdraw early, but claim hardship, you can defer the tax on the early withdrawal.
Talk to someone who stayed in a Holiday Inn Express.
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