Ninety-eight percent of 401(k) hardship withdrawals made in 2009 were used to prevent eviction or home foreclosure, according to a new survey.
The Profit Sharing 401k Council of America surveyed plans at 931 companies with 8.6 million participants and found that nearly 100% of hardship distributions were tied to situations to save a home. Coming in close second at 97.2% was paying for medical expenses followed by post-secondary education costs (93.5%).
In 90.2% of the plans surveyed, 401(k) loans were permitted. An average of 23.1% of participants had loans outstanding with an average loan amount of $8,760. Nearly 52% of the plans only allowed one loan at a time.
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