The country's retirement savings deficit, estimated by the nonprofit Employee Benefit Research Institute at more than $4 trillion, invariably calls into question the matter of 401(k) loans and the extent of the toll that plan leakage may be having on Americans' ability to save adequately for retirement.
A recent study shows that toll may be much higher than previously thought.
A team of academics affiliated with the Pension Research Council at the University of Pennsylvania's Wharton School of Business estimates that defaults on plan loans are costing retirement savers $6 billion annually, according to data published in "Borrowing from the Future: 401(k) Plan Loans and Defaults."
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