Comments on: The Truth about 401(k) Loans and Withdrawals

By: centerpointloans

centerpointloans — Thu, 04 Apr 2013 07:46:54 +0000

Thanks for sharing this relevant and useful information..

By: Private Money Fawnskin

Private Money Fawnskin — Thu, 04 Apr 2013 07:45:17 +0000

Thank you for providing this information..

By: BPP401k.com Newsletter February 13 Benefit Plans Plus 401k

BPP401k.com Newsletter February 13 Benefit Plans Plus 401k — Tue, 12 Feb 2013 19:25:26 +0000

[...] The Truth about 401k Loans and Withdrawals Larry Zimpleman, chairman, president and chief executive officer of the Principal Financial Group writes, “A new report on 401k plan loans and withdrawals has spurred a number of articles in the media and, in some cases, significant misunderstanding. One article in particular in the Washington Post paints a distorted picture alleging that ‘widespread breaching’ of 401k accounts is on the rise and is ‘undermining’ retirement security. Hold on a second.” Source: Principal.com [...]

By: Mike Adelman

Mike Adelman — Mon, 11 Feb 2013 13:54:43 +0000

That’s excellent to hear. Keep fighting the good fight!

By: Jason Yepko

Jason Yepko — Mon, 11 Feb 2013 12:33:56 +0000

Nobody ever seems to discuss the fact that loans create double taxation on pretax contributions. After tax repayments as well as taxes paid upon distribution of dollars.

By: Larry Zimpleman, chairman, president and chief executive officer, the Principal Financial Group

Fri, 08 Feb 2013 22:17:15 +0000

Thanks Mike. This post started out as a letter we sent to the editor of the Washington Post but it wasn’t published. So we expanded on the original and placed it here. It is getting heavy circulation on Twitter including by some well-known, widely read industry associations.

By: Mike Adelman

Mike Adelman — Thu, 07 Feb 2013 21:57:39 +0000

You should consider responding to the Washington Post with an op-ed that is similar to what you have shared in this blog entry. There’s too much gloom and doom in the news, and offsetting even a small portion of that is a moral victory. Thanks for sharing this!

By: Margie Gillespie

Margie Gillespie — Thu, 07 Feb 2013 16:43:20 +0000

Coincidentally, I spoke with a decision-maker of a 401(k) plan last week who has an outstanding loan in the amount of $17,000. As you can imagine, his loan repayment amounts are rather high preventing him from participating in the plan. The employer offers a lucrative match (50% up to an unlimited deferral amount). He now realizes that by taking out the five-year loan under the 40(k) plan, he’s missing out on tax-deferred savings along with the employer match. He now says he would have taken a different route if he had thought all things through.

By: Paul Smith

Paul Smith — Thu, 07 Feb 2013 14:42:30 +0000

Thank you for providing a more rational perspective than what is too often reported in the popular press. This is an important issue and it’s good to have a better understanding of its full context.