Senate Bill Would Limit 401(k) Loans

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I'll stop spending my money when the Government stops wasting my money.

Margaret Marty of MT 12:33PM April 25, 2012

Money isn't LEAKING from 401Ks. It get borrowed, and then it gets REPAID with INTEREST.
Why do the idiots in Congress fail to understand this simple concept. Oh wait. . they are the same people who manage the Government's finances. And they want to lecture us on how we should manage OUR money?

Bill V of WA 4:29PM June 09, 2011

I too work in the 401(k) industry and have for 20 years. It shouldn't be any of the govt's business how Employers operate their plans or how Employees choose to invest their own money. Quit Big Brother-ing the Retirement Plan Industry to death! Employers are getting sick of the gov't continuously nit picking at this stuff. Eventually, there are going to be so many rules the Employers are going to throw up their hands and say "forget it! I don't want to even offer a plan to my Employees anymore!"
And do you think the # of outstanding loans is the problem? Tell me this - who has a bigger problem? Joe with 5 outstanding loans at $1,000 each or Bob with a single $50,000 loan?
It might be irritating to issue a loan for new carpet or a boat but I want my savings to be there and accessible so that when I want to borrow it for a legitimate reason, I can borrow it and not have the gov't tell me I can't. Like you said, Cheryl, it will catch up with them eventually. Let it happen.

MC of WA 5:56PM May 24, 2011

they're all crooks. this is just another example of the squeezing ability of the federal gov't to limit individuals ability to diversify. i like the ability to have buying power that is afforded with a 401 loan and i pay myself back, not a bank. this only assists big financial institutions in getting hold of capital and continuing the 3 card monty that the stock markets have become. Anybody's 401 more valuable now than 5-6 years ago? (except for contributions and company matches). why dont these legislators work on problems, not look out for their cronies. disgusting.

ds of FL 2:07PM May 23, 2011

Government has no business dictating what financial decisions individuals can make with their own money. In these austere stagflation economic times many people are faced with the painful decision between losing assets they have spent years investing in or tapping into their savings.
This decision space of a rational adult should not be dictated by a nanny state.
Some other countries have made a grab for the retirement savings of their citizens to support their fiscally unsustainable entitlement programs. If the US government can lock up your 401(k), will they stop at that point on the slippery slope after their reluctance to deal with medicare and social security underfunding?

Aaron Gorshen of WI 11:50AM May 21, 2011

Keep your hands OFF my 401K plan. I'm smart enough to know what I need to maintain my support without some government idiot that can't balance the federal budget trying to tell me how to use MY MONEY. The government already gets additional taxes and fees when I withdraw 401K funds, so what makes them think they should get more?
Enough of this nanny-state crap already!!!

Mike Wille of FL 11:45AM May 21, 2011

Cheryl's post is uncalled for. Not everyone is rich like you apparently are.

Jd of CT 8:51PM May 20, 2011

I work in the 401(k) industry and am sickened when I issue loans for new carpet, a new boat or just because a loan is available. These are the same people who do not understand why they do not have money available for a loan when they need the money because their husband is laid off or have an unexpected expense. Too may participants tap into this money just because it is there, not because they need it. These same people are the ones who do not understand why their distribution check is less then they thought - because they did not repay their loans. They will turn to the government for retirement income and act surprised that they do not have any money for retirement because they took loans from their retirement account and did not pay them back. Unfortunately they government will take care of them and those of us who did not abuse our retirement plan will have to pay for their retirement.
I would like to see them limit or eliminate loan refinancing. Know of someone who has refinanced his or her loan 20 times. Every time they have a little more money available for a loan they takes it and refinances the loan so they consistently have 50% of their account balance as an outstanding loan. This will catch up with them and they will not have enough money to retire.

Cheryl of OH 8:30PM May 19, 2011