These kinds of withdrawals indicate sever financial distress. They are an absolute last resort in most households.
Quoting from the article – To be eligible for a 401(k) hardship withdrawal, individuals must demonstrate an immediate and heavy financial need, according to IRS regulations. Certain medical expenses; costs relating to the purchase of a primary home; tuition and education expenses; payments to prevent eviction or foreclosure on a primary home; burial or funeral expenses; and repair of damage to a primary home meet the IRS definition and are permitted by most 401(k) plans.
Forty five percent of those seeking a hardship withdrawal this year got one last year.
It’s another sign that his economy is not getting better. It’s getting worse.
During the last great depression, the government created jobs and increased spending, developing enormous projects like the Tennessee Valley Authority and the Hoover Dam.
America will not recover until there are jobs for every American who wants one.
James Pilant
