6 ms·

The trend has been going on for couple years. It's not a clickbait. Hardship withdrawal is up by 3x fold looking at 20 year chart. https://image.cnbcfm.com/ap

• mywittyname 3y ago
  In 2019, new rules took effect which greatly expanded what constitutes a hardship withdrawal. So it's not really an apples-to-apples to look at data pre-2018. We would expect an uptick no matter what (which we see in 2019). So this is a matter of how much of this is attributed to economic conditions vs. people taking advantage of new laws.
  • lotsofpulp 3y ago
    Very good point. https://www.shrm.org/ResourcesAndTools/hr-topics/benefits/Pages/irs-final-rule-eases-401k-hardship-withdrawals.aspx https://www.shrm.org/ResourcesAndTools/hr-topics/benefits/Pa... Specifically: >Under the rules currently in place, plan administrators must take into account "all relevant facts and circumstances" to determine if a hardship withdrawal is necessary. The new rule requires only that a distribution not exceed what an employee needs and that employees certify that they lack enough cash to meet their financial needs. Plan administrators can rely on that certification unless they have knowledge to the contrary. Plans are required to apply this standard starting in 2020. It might still be interesting to track changes in hardship withdrawals, but I am not sure if it is for the reason people might assume without the knowledge that the rules greatly changed.