Participants in tax-deferred retirement accounts, including 401(k) and IRA plans, withdraw 30 to 45 percent of their annual total contributions in premature withdrawals, according to the Pension Research Council.
Out of those, the PRC estimates there are $6 billion in defaults on national 401(k) loans annually, generating just over $1 billion in federal tax revenue per year.
Most active DC participants in the U.S. are allowed to borrow from their retirement accounts and about one-fifth take advantage or four in 10 over a five-year period, the report's authors found.
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