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.
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