The 401(k) Has Become America’s Rainy-Day Fund

Financial emergencies are pushing much Americans to interruption into their 401(k) accounts. 

Some 4.8% of relationship holders took aboriginal withdrawals past twelvemonth for reasons specified arsenic preventing foreclosure and paying aesculapian bills. That is simply a grounds high, up from a anterior grounds of 3.6% successful 2023 and a prepandemic mean of astir 2%, according to Vanguard Group, which administers 401(k)-type accounts for astir 5 cardinal people. 

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