Default rates are up 70% in the past few years. Currently the problem only amounts to $37 billion a year, but is a bad scenario for those raiding their nest egg.
If you enjoy the content at iBankCoin, please follow us on TwitterRelated Articles
A Preview to the Fed Decision Today
July 30, 2014
Should Individual Investors Zig Instead of Zag?
July 14, 2014
I’m wondering how many people used their 401(k) loans as equity to buy a house (you can borrow the lesser of 50% or $50k), and then couldn’t meet their budget for repayment. This will equal a large tax bill for these people – it’s a 10% penalty plus federal and state income taxes on the amount you borrowed. If they’re already having trouble making ends meet, then it could be crushing.