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C. – Almost $300,000 in lost retirement savings.
When a participant defaults on a 401(k) loan, they stand to lose up to $300,000 in retirement savings over the course of a career. This figure, based on a landmark study by Deloitte, includes the cumulative effect of the loan default upon retirement, including paying taxes and early-withdrawal penalties, factoring in lost earnings and any early cash-out of the defaulting participant’s full plan balance.
$300,000 is a lot of retirement security to lose! Plan sponsors can protect participant loans from involuntary default with Retirement Loan Eraser, a low cost, automated insurance program.
INCORRECT – The correct answer is C. – Almost $300,000 in lost retirement savings.
When a participant defaults on a 401(k) loan, they stand to lose up to $300,000 in retirement savings over the course of a career. This figure, based on a landmark study by Deloitte, includes the cumulative effect of the loan default upon retirement, including paying taxes and early-withdrawal penalties, factoring in lost earnings and any early cash-out of the defaulting participant’s full plan balance.
$300,000 is a lot of retirement security to lose! Plan sponsors can protect participant loans from involuntary default with Retirement Loan Eraser, a low cost, automated insurance program.
