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Premature plan withdrawals total up to 45 percent

It is estimated that one in 10 loans is not repaid, in large part because individuals leave current employers and dont bother repaying what they owe.

By Paula Aven Gladych | Updated on February 18, 2014

Participants in tax-deferred retirement accounts, including 401(k) and IRA plans, withdraw 30 to 45 percent of their annual total contributions in premature withdrawals, according to the Pension Research Council.

Out of those, the PRC estimates there are $6 billion in defaults on national 401(k) loans annually, generating just over $1 billion in federal tax revenue per year.

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