Using a 401(k) Loan to Cope With Coronavirus Costs
The Coronavirus Aid, Relief, and Economic Security Act of March 2020 doubles the amount retirement savers can borrow from a 401(k) plan. But that doesn't necessarily mean you should raid your future retirement savings, even during the coronavirus pandemic.
"If we weren't in this crisis moment that we are in today, typically I would advise not to be tapping into your 401(k)," says Rhian Horgan, CEO and founder of the retirement planning platform Kindur in New York City. "That money is your future paycheck. Those funds will not be growing while money is out of your account."
Rodney Brooks
An award-winning journalist, writer and author and my specialty is retirement planning and other personal finance issues. I have written for many national publications, including USA TODAY, The Washington Post, U.S. News & World Report, AARP and National Geographic. I am available to speak on personal finance, financial literacy and the racial wealth gap.
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The author tells the history of the Freedman’s Savings Bank, how it grew much too quickly, why it failed and the impact on Black America. The Freedman’s Bank offered a safe depository for formerly enslaved people, expanded quickly and gained millions in deposits – mostly ranging from $5 to $50. But inexperience and corruption doomed it to failure, costing may of the small depositors their savings.
