It's time policymakers consider limiting 401(k) hardship withdrawals to "unpredictable" events like disability, health care emergencies or unemployment.
Also, the age for penalty-free plan withdrawals should be boosted, while lump-sum cash-outs can be eliminated by requiring that retirement assets be left in a plan or rolled over to an IRA.
So says the Center for Retirement Research at Boston College in a paper calling for consideration of these measures in the face of mounting concerns over plan leakage.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
