GAO calls for new guidelines on 401(k) hardship withdrawals

10/1/2009 | Financial-Planning.com

The Government Accountability Office wants people who make emergency withdrawals from their 401(k) accounts to be spared from the ban on making contributions for six months after such a withdrawal. About 15% of 401(k) plan participants have made some form of a hardship withdrawal. "Despite the financial hardships many are facing, people need to resist raiding their 401(k), because it can be a really bad deal for them over the long run," said Sen. Herb Kohl, D-Wis.

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