Printable View
Should you withdraw from your 401(k), HSA, CDs for fast cash during coronavirus? Here’s what experts say
More: https://www.cnbc.com/2020/03/30/shou...ronavirus.htmlQuote:
If you need cash fast, you may be wondering what your best options are. Before taking on debt, start by assessing your existing accounts.
Here, experts weigh in on the pros and cons of tapping the most common account types.
I was listening to someone from Fidelity talk about this recently and she said the numbers weren't as bad as they thought. I figured it would be a bonanza of spending when this rule was implemented and heard some rumors of people who took loans at work.
Interesting point that those who were most in need of the loan are least likely to even have a 401k.
https://www.fidelity.com/insights/re...ic-withdrawalsQuote:
Fidelity Investments, the largest 401(k) provider in the country, has seen 4.6% of eligible people take some money out through Sept. 30 due to the virus. An additional 1% have taken a so-called hardship distribution that allows withdrawals for reasons including buying a home, preventing foreclosure or paying medical bills. That is compared with about 2% a year that typically take a hardship distribution.
The main reason withdrawal rates are lower than expected is the inequalities in the workforce, economists say. Low-income workers who would be most likely to tap a 401(k) are least likely to have one.