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Stock-purchase plans help cut 401(k) loans

A Fidelity study shows that employees with access to both an ESPP and a 401(k) tend to borrow a smaller amount from their 401(k) and had a lower outstanding loan amount.

By Marlene Y. Satter | Updated on November 13, 2014

Are employee stock purchase plans the answer to keeping employees from taking loans against their 401(k)s? 

According to a study of plan participants who work for Fidelity Investment’s client sponsors, employees are, in fact, less likely to take a loan from their 401(k) account if their company also offers an ESPP. 

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