Benefitsblog

SEC Posts Advisory Alert Regarding 401(k) Debit Cards

If you read my previous post here discussing a recent Tax Court case illustrating the perils of borrowing from a 401(k) plan, you will also want to read this Advisory Alert just posted on the SEC's website regarding 401(k) plan debit cards: "401(k) Debit Cards: What You Might Not Know." See also this FINRA Alert as well: "401(k) Debit Cards—Think Before You Swipe."

More links:

• Read about recent attempts by legislators to ban 401(k) debit cards here: "Schumer, Kohl Offer Legislation to Ban Debit Cards That Raid Retirement Accounts." The lawmakers are arguing that the average American should not be allowed such easy access to funds in their 401(k) when they are saving too little already.
• Read an article about the 401(k) debit card generally: "Retirement debit cards sound like a nightmare, but have some benefits."

Posted by B. Janell Grenier at July 30, 2008 12:18 PM