These are unusual economic times.

Confirmation of that fact can be found in recent reports of increased retirement plan "liquidity events" – i.e., loans, withdrawals and pre-retirement distributions. For example, Fidelity Investments, which provides recordkeeping services for $700 billion of defined contribution plan assets, reported a 17% increase in withdrawals from its 401(k) plans in December. Great-West Retirement Services, a manager of 3.5 million retirement plan accounts, reported that its hardship withdrawals and loans increased in 2007 by 14% and 13%, respectively, compared to the previous year.

Financial columnist Terry Keenan wrote recently that retirement plan liquidity events are "a logical, though ill-advised, next step for consumers who have already tapped out the equity in their homes and the limits on their credit cards. Millions are turning on the 401(k) spigot, despite the fact that such withdrawals often require fees and additional tax payments."