Alert
Close

Think you know AARP? What you don't know about us may surprise you. Discover all the 'Real Possibilities'

Highlights

Open

Jobs You Might Like

Most POPULAR

Viewed

Commented

Work
PROGRAMS

Best Employers for Workers Over 50

See the latest winners of this AARP recognition program.

Employer Resource Center

Attract and retain top talent in a changing workforce.

The Hard Truth About Hardship Withdrawals

Workers are putting a crimp in retirement savings by dipping into 401(k) plans early.

More workers are raiding their retirement nest eggs as high unemployment and a sluggish economy continue to take a toll on the financial health of Americans. A recent Fidelity survey found a sharp rise in hardship withdrawals from 401(k) plans. The top reasons cited for the withdrawals were to prevent foreclosure, pay for college and purchase a home.

A hardship withdrawal should be considered a last resort, assuming the option is available at all. Not all 401(k), 403(b) and 457 retirement plans permit hardship withdrawals. Those that do require evidence of an immediate and heavy financial need, such as a medical emergency or imminent eviction. … Back to Article

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts

Processing

Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.

Your Work

Jobs You Might Like

Discounts & Benefits

Explore Your Learning Possiblities