Myths and Facts About 401(k) Loans
Myth: 401(k) loans are the problem.
Fact: Loan DEFAULTS upon job loss are the problem. Participants value loans, and may be more likely to participate in the plan when they have the ability to borrow.
Myth: Loan defaults are a limited problem.
Fact: Loan defaults trigger full cash outs approximately 75% of the time.
Myth: Loan leakage has no solution.
Fact: Retirement Loan EraserTM prevents loan defaults and cash outs.