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401(k) Funds Are Being Diverted for Medical Expenses

March 1, 2021

Via: HR Hero

The short-term financial impact of COVID-19 has been swift and damaging to many Americans. While we can’t yet calculate the long-term impact, early indications present a serious financial strain on future retirees’ retirement. We know that COVID-19 has increased the retirement gap, and new data from Kiplinger show the extent of this impact: 60% of Americans withdrew funds from their individual retirement account (IRA) or 401(k) in 2020. That same survey shows that an additional 27% borrowed against their 401(k) during COVID. A staggering 41% of these account holders did so to pay medical expenses.

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