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Released: August 31, 2010

Thinking of raiding your 401(k)? Don’t

Source: Sandra Block, USA Today

It’s no secret that millions of Americans haven’t saved enough to finance a comfortable retirement. Now comes even more worrisome news: Thousands of workers are raiding their retirement-savings plans to pay their bills.

In the second quarter, a record 2.2% of participants in 401(k) plans managed by Fidelity Investments took hardship withdrawals from their savings, up from 2% a year earlier. In addition, 45% of participants who took a hardship withdrawal a year ago took another one in the second quarter.

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