Raiding the Retirement Stash

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I agree that there needs to be a stopgap for allowing people to borrow from their retirement funds. We should have a policy that discourages withdrawals for home purchases or to pay for college expenses. This pot should be reserved for retirement.

Loans from a 401(k) plan should be allowed only in dire situations, such as a job loss, disability or major illness.

Changes to the loan policies are needed. But it would be hard to persuade people to fund an account they had no access to under any circumstances. That's not realistic, nor is it compassionate.

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