As home prices fall and banks tighten lending standards, more people are raiding their retirement savings just to get by.

But dipping into 401(k) accounts can carry risks because defaulted loans and hardship withdrawals are taxed as income and are subject to a 10 percent penalty if the worker is under 59 1/2 years old. That means if the trend grows, many Americans will risk coming up short on retirement savings or may have to rely on an overburdened Social Security system.

 

Submitted: Feb 20, 2008    Views: 212    Comments: 0    Likes: 1   


View Article: http://www.msnbc.msn.com/id/23241606/


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