Just Put It on My 401(k) Debit Card

[spotbird]

Borrowing against your nest egg is becoming as easy as stopping at an ATM.
A growing number of companies now offer employees the option of being issued a debit card that taps a 401(k) loan. The card, called ReservePlus, allows workers to withdraw funds from their 401(k)s.

The immediate concern for consumers is that impulse spending desires could trump their long-term savings needs.

Here's how it works: After a company adopts the program, employees can transfer their approved loan line into a ReservePlus account online. Later, they receive a debit card that they can use to take out as much or as little as they need of the loan amount -- on average taking out 35% less than they applied for, says David Young, director of Reserve Solutions at The Reserve, the company offering the cards.

http://biz.yahoo.com/ts/080114/10398317.html?.v=2&.pf=retirement

[russian33]

1. never heard of this, but borrowed from my 401K many times before

especially around christmas time...paid it all off within a year, and borrowed again :)

[RB TexLa]

2. Be careful mentioning that some people use things responsibly, that kind of talk is not always

appreciated here.

:)

[Kolesar]

3. Worst case it could result in a very short thread ... eom

[RC]

4. Another ploy to bankrupt Americans.

If anyone were to be really concerned with the well being of the average American, then the powers that be would be expanding the manufacturing sector within our borders and paying living wages to Americans in America.

This sounds like Wally World's idea to create a whole generation of greeters for their expanded megaworld stores.

[fujiyama]

5. Seems to defeat the whole point of having a 401(k) in the first place

plus, I'd imagine some mortgage and brokerage charge exorbitant fees to withdraw money from these accounts. I suppose though, this isn't all that different from taking out another mortgage to pay for different things...