{"id":10885,"date":"2023-11-08T03:39:42","date_gmt":"2023-11-08T03:39:42","guid":{"rendered":"https:\/\/infundpros.com\/business\/more-americans-are-yanking-money-from-their-401k-plans-to-pay-the-bills\/"},"modified":"2023-11-08T03:39:43","modified_gmt":"2023-11-08T03:39:43","slug":"more-americans-are-yanking-money-from-their-401k-plans-to-pay-the-bills","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=10885","title":{"rendered":"More\u00a0Americans are yanking money from their 401(k) plans to pay the bills"},"content":{"rendered":"
\n

\n A growing number of cash-strapped Americans are cracking their nest eggs for emergency funds.\n <\/p>\n

\n The number of 401(k) plan participants\u00a0taking hardship distributions\u00a0increased by 13% between the second and third quarters, according to an analysis by Bank of America of its clients\u2019 employee benefit programs.\n <\/p>\n

\n That figure now stands at 18,040, the highest level in at least the past five quarters since Bank of America started tracking this data.\n <\/p>\n

\n The growing reliance on 401(k) plans as a source of urgent cash is further evidence of consumer financial stress heading into the 2024 election year.\n <\/p>\n

\n Despite high GDP and\u00a0low unemployment, some Americans are clearly facing a cash crunch and struggling to pay the bills.\n <\/p>\n

\n Lisa Margeson, managing director of Bank of America\u2019s retirement research and insights group, said the rising number of 401(k) hardship distributions could be caused by high inflation and the rising cost of living.\n <\/p>\n

\n As Covid-era savings shrink, more and more consumers are turning to a costly way to borrow: Credit cards. Despite record-high rates, credit card balances have swelled by $148 billion over the past year to $1.08 trillion, according to a report from the New York Federal Reserve released Wednesday.\n <\/p>\n

\n The same report also found that the share of households newly delinquent on credit cards is at the highest level in a dozen years.\n <\/p>\n

\n Others are leaning on their retirement accounts for cash.\n <\/p>\n

\n Bank of America said the number of 401(k) participants taking hardship distributions increased by 27% from the first quarter of this year. The average withdrawal amount was steady at $5,070.\n <\/p>\n

\n Bank of America\u2019s client employee benefit programs are comprised of more than 4 million plan participants.\n <\/p>\n

\n The bank found that 0.59% of 401(k) participants took a hardship distribution last quarter, up from 0.52% in the second quarter and 0.49% the year before.\n <\/p>\n

\n According to the IRS, for a distribution from a 401(k) plan to be considered a hardship, it must be made because of an \u201cimmediate and heavy financial need, and limited to the amount necessary to satisfy that financial need.\u201d The\u00a0401(k) participant gets taxed on this cash withdrawal (it is subject to income tax,) and the money is not paid back to the account.\n <\/p>\n

\n Financial experts typically urge people to avoid tapping their 401(k) plans for emergency cash, if they can. That\u2019s because funds pulled from retirement accounts will miss out on years, if not decades, of expected growth in the market.\n <\/p>\n

\n \u201cIt\u2019s important that employees try to minimize withdrawals from their 401(k)\u2026whenever possible,\u201d Bank of America\u2019s Margeson said. \u201cWhen left to grow and invest, these savings can provide employees with a solid nest egg \u2014 setting them up for a bright financial future.\u201d\n <\/p>\n

\n The good news is that despite the high cost of living, many Americans are still socking away money in their retirement accounts.\n <\/p>\n

\n Bank of America found 401(k) contribution rates were steady during the third quarter at 6.5%.\n <\/p>\n

\n Even better, Bank of America found that more than one in five (21.3%) of Gen Z and 10.4% of Millennials are ramping up their contribution rates. Just under 3% of those age groups are cutting back on their retirement savings.\n <\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A growing number of cash-strapped Americans are cracking their nest eggs for emergency funds. The number of 401(k) plan participants\u00a0taking hardship distributions\u00a0increased…<\/p>\n","protected":false},"author":1,"featured_media":10886,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":{"0":"post-10885","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\nMore\u00a0Americans are yanking money from their 401(k) plans to pay the bills | inFundPros<\/title>\n<meta name=\"description\" content=\"A growing number of cash-strapped Americans are cracking their nest eggs for emergency funds. The number of 401(k) plan participants\u00a0taking hardship\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/infundpros.com\/?p=10885\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"More\u00a0Americans are yanking money from their 401(k) plans to pay the bills | inFundPros\" \/>\n<meta property=\"og:description\" content=\"A growing number of cash-strapped Americans are cracking their nest eggs for emergency funds. The number of 401(k) plan participants\u00a0taking hardship\" \/>\n<meta property=\"og:url\" content=\"https:\/\/infundpros.com\/?p=10885\" \/>\n<meta property=\"og:site_name\" content=\"inFundPros\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-08T03:39:42+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-08T03:39:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/11\/gettyimages-905677058.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"450\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Press Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Press Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/infundpros.com\/?p=10885#article\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/?p=10885\"},\"author\":{\"name\":\"Press Room\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\"},\"headline\":\"More\u00a0Americans are yanking money from their 401(k) plans to pay the bills\",\"datePublished\":\"2023-11-08T03:39:42+00:00\",\"dateModified\":\"2023-11-08T03:39:43+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/infundpros.com\/?p=10885\"},\"wordCount\":530,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"articleSection\":[\"Business\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/infundpros.com\/?p=10885#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/infundpros.com\/?p=10885\",\"url\":\"https:\/\/infundpros.com\/?p=10885\",\"name\":\"More\u00a0Americans are yanking money from their 401(k) plans to pay the bills | inFundPros\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/#website\"},\"datePublished\":\"2023-11-08T03:39:42+00:00\",\"dateModified\":\"2023-11-08T03:39:43+00:00\",\"description\":\"A growing number of cash-strapped Americans are cracking their nest eggs for emergency funds. The number of 401(k) plan participants\u00a0taking hardship\",\"breadcrumb\":{\"@id\":\"https:\/\/infundpros.com\/?p=10885#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/infundpros.com\/?p=10885\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/infundpros.com\/?p=10885#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/infundpros.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"More\u00a0Americans are yanking money from their 401(k) plans to pay the bills\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/infundpros.com\/#website\",\"url\":\"https:\/\/infundpros.com\/\",\"name\":\"Fintech Advance\",\"description\":\"Latest Finance and Tech News and Updates\",\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/infundpros.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/infundpros.com\/#organization\",\"name\":\"Fintech Advance\",\"url\":\"https:\/\/infundpros.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"width\":409,\"height\":70,\"caption\":\"Fintech Advance\"},\"image\":{\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\",\"name\":\"Press Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"caption\":\"Press Room\"},\"sameAs\":[\"https:\/\/infundpros.com\"],\"url\":\"https:\/\/infundpros.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"More\u00a0Americans are yanking money from their 401(k) plans to pay the bills | inFundPros","description":"A growing number of cash-strapped Americans are cracking their nest eggs for emergency funds. The number of 401(k) plan participants\u00a0taking hardship","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/infundpros.com\/?p=10885","og_locale":"en_US","og_type":"article","og_title":"More\u00a0Americans are yanking money from their 401(k) plans to pay the bills | inFundPros","og_description":"A growing number of cash-strapped Americans are cracking their nest eggs for emergency funds. The number of 401(k) plan participants\u00a0taking hardship","og_url":"https:\/\/infundpros.com\/?p=10885","og_site_name":"inFundPros","article_published_time":"2023-11-08T03:39:42+00:00","article_modified_time":"2023-11-08T03:39:43+00:00","og_image":[{"width":800,"height":450,"url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/11\/gettyimages-905677058.jpg","type":"image\/jpeg"}],"author":"Press Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Press Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/infundpros.com\/?p=10885#article","isPartOf":{"@id":"https:\/\/infundpros.com\/?p=10885"},"author":{"name":"Press Room","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff"},"headline":"More\u00a0Americans are yanking money from their 401(k) plans to pay the bills","datePublished":"2023-11-08T03:39:42+00:00","dateModified":"2023-11-08T03:39:43+00:00","mainEntityOfPage":{"@id":"https:\/\/infundpros.com\/?p=10885"},"wordCount":530,"commentCount":0,"publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"articleSection":["Business"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/infundpros.com\/?p=10885#respond"]}]},{"@type":"WebPage","@id":"https:\/\/infundpros.com\/?p=10885","url":"https:\/\/infundpros.com\/?p=10885","name":"More\u00a0Americans are yanking money from their 401(k) plans to pay the bills | inFundPros","isPartOf":{"@id":"https:\/\/infundpros.com\/#website"},"datePublished":"2023-11-08T03:39:42+00:00","dateModified":"2023-11-08T03:39:43+00:00","description":"A growing number of cash-strapped Americans are cracking their nest eggs for emergency funds. The number of 401(k) plan participants\u00a0taking hardship","breadcrumb":{"@id":"https:\/\/infundpros.com\/?p=10885#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/infundpros.com\/?p=10885"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/infundpros.com\/?p=10885#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/infundpros.com\/"},{"@type":"ListItem","position":2,"name":"More\u00a0Americans are yanking money from their 401(k) plans to pay the bills"}]},{"@type":"WebSite","@id":"https:\/\/infundpros.com\/#website","url":"https:\/\/infundpros.com\/","name":"Fintech Advance","description":"Latest Finance and Tech News and Updates","publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/infundpros.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/infundpros.com\/#organization","name":"Fintech Advance","url":"https:\/\/infundpros.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","width":409,"height":70,"caption":"Fintech Advance"},"image":{"@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff","name":"Press Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/person\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","caption":"Press Room"},"sameAs":["https:\/\/infundpros.com"],"url":"https:\/\/infundpros.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/10885","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10885"}],"version-history":[{"count":1,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/10885\/revisions"}],"predecessor-version":[{"id":10887,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/10885\/revisions\/10887"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/media\/10886"}],"wp:attachment":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}