The Disaster Continues… Record Number of Workers Make Hardship Withdrawals From Their 401(k) Plans
Thanks Barack… The dismal policies of this administration has forced American workers in record numbers to make hardship withdrawals from their 401 plans this year.
American Thinker reported, via Free Republic:
As the economy continues to worsen under Obama’s “recovery” plan, more disturbing news emerges. A record number of workers made hardship withdrawals from their 401(k) retirement plans. In fact, “the number of workers borrowing from their accounts reached a 10-year high” and reflects “the financial stress many workers” are experiencing according to Beth McHugh, Fidelity’s vice president of marketing insight.
The report was made by Fidelity Investments which administers 17,000 plans and represents 11 million participants. The number of people initiating the hardship distributions has risen from 45,000 in 2009 to 62,000 in 2010. Equally alarming is that “45 percent of participants who took a hardship withdrawal a year ago, took another one this year.”
These 401(k) withdrawals are a result of the increasing unemployment in the country as well as companies cutting back on “overtime or overall hours” of their workers.
Related… Nearly half of the 1.3 million homeowners who enrolled in the Obama administration’s flagship mortgage-relief program have fallen out.