Almost 1 million Fidelity Investments 401(k) account holders took out a loan from their accounts in the past year, including a small yet troubling number of millennials who used the money to buy homes, the financial services giant said Wednesday.
As might be expected, to pay back those loans, some people cut back on plan contributions or stop contributing altogether, which can result in retirement income that's hundreds of dollars less per month than it could have been.
"The number of investors borrowing from their 401(k) has trended upwards in recent years, with more than two million investors now having an outstanding loan," said Doug Fisher, senior vice president of thought leadership and policy development at Fidelity Investments.
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