Most of us learn about LDL when we visit our doctors each year. In a physician’s office, LDL stands for low-density lipoprotein, commonly known as ‘bad cholesterol’, and we get concerned if the number is too high. If we were a 401k plan, LDL would refer to loan default losses and be just as scary. Retirement LDL is equal to retirement plan loan defaults, penalties, premature taxes, and the investment gains that would have been earned had a loan been repaid and remained invested until the employee reached retirement age.

Read the 401(k) Specialist article here.