by Robert C. Lawton | May 30, 2017 | Plan Design, Plan Sponsor Insights
A significant factor in helping your 401k plan participants achieve retirement readiness is protecting them from themselves. In other words, helping participants avoid making bad decisions. An important component of that process is minimizing the loss of participant account balances from loan defaults.
Also called leakage, defaulted loan balances are typically removed from participant retirement accounts forever. This account leakage can be reduced by a well-designed 401k loan program. A state-of-the-art 401k loan program has the following characteristics:
by Robert C. Lawton | May 2, 2017 | Employee Education, Plan Sponsor Insights
Taking a 401k loan is such a bad investment choice that it should not be allowed in any 401k plan other than for hardship reasons. And yes, it is an investment because when plan participants take 401k loans, they become one of the investments in their accounts....
by Robert C. Lawton | Jul 21, 2015 | Plan Design, Plan Sponsor Insights
Time Magazine reports that one in four Americans tapped into their 401k account. Research from Fidelity indicates that 22% of participants in plans they administer have an outstanding loan. This is troubling because the high rate of 401k plan loan defaults results in...
