Helena
Full time employment: Posting here.
- Joined
- Aug 27, 2006
- Messages
- 994
Just think of all the taxes and penalties
paid to the government when cash poor
employees raid their 401K retirement funds
to pay credit card and mortgage debt.
I wonder how many of those 401K loans
are ever paid back ?
Employees Raiding 401(k)s, CFOs Say
The economic slump will cut into employee bonuses, new survey results show, even as many workers are already taking hardship withdrawals from their retirement funds.
December 5, 2007
The weakening American economy is beginning to take its toll on corporate employees where it hurts the most: their salaries and savings.
The latest Duke University/CFO Magazine Global Business Outlook Survey, which polls 573 finance chiefs in the U.S. and 1,275 globally, finds that year-end employee bonuses will fall by 10 percent this year compared to 2006. That decline could be especially painful at a time when more employees are dipping into their retirement accounts in order to pay bills.
The survey finds that nearly 20 percent of companies have seen increased hardship withdrawals from 401(k) accounts, often to cover mortgage payments or to avoid personal bankruptcy.
"In the last four or five months we have seen an absolute onslaught of people trying to do hardship withdrawals and loans out of 401(k)s," Mark Anderson, CFO of Granite City Electric, told CFO magazine in October. "What has happened with housing and the economy has really blown up for people at the lower end of the spectrum."
entire article at link
Employees Raiding 401(k)s, CFOs Say - - CFO.com
paid to the government when cash poor
employees raid their 401K retirement funds
to pay credit card and mortgage debt.
I wonder how many of those 401K loans
are ever paid back ?
Employees Raiding 401(k)s, CFOs Say
The economic slump will cut into employee bonuses, new survey results show, even as many workers are already taking hardship withdrawals from their retirement funds.
December 5, 2007
The weakening American economy is beginning to take its toll on corporate employees where it hurts the most: their salaries and savings.
The latest Duke University/CFO Magazine Global Business Outlook Survey, which polls 573 finance chiefs in the U.S. and 1,275 globally, finds that year-end employee bonuses will fall by 10 percent this year compared to 2006. That decline could be especially painful at a time when more employees are dipping into their retirement accounts in order to pay bills.
The survey finds that nearly 20 percent of companies have seen increased hardship withdrawals from 401(k) accounts, often to cover mortgage payments or to avoid personal bankruptcy.
"In the last four or five months we have seen an absolute onslaught of people trying to do hardship withdrawals and loans out of 401(k)s," Mark Anderson, CFO of Granite City Electric, told CFO magazine in October. "What has happened with housing and the economy has really blown up for people at the lower end of the spectrum."
entire article at link
Employees Raiding 401(k)s, CFOs Say - - CFO.com