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Using Nest Eggs Before Maturity; Despite Penalties, More Workers Are Borrowing From 401(k) Plans
- Article from:
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The Washington Post
- Article date:
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September 2, 2008
- Author:
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Copyright informationCopyright 2008 The Washington Post. This material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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Six months ago, Ivan Sanchez was optimistic about his future. He
had recently earned a bachelor's degree in business management and
was writing a book about growing up among gangs and guns in the
Bronx.
Then he was threatened by something else: a credit card bill,
student and car loan debt, higher gas bills and rising rent. With
two high school age children in need of clothing and school supplies
and a toddler in need of much more, it didn't take very long for
Sanchez's optimism to fade. That's when he decided to do what any
financial planner would advise against: He dipped into his 401(k)
retirement plan.
"There's no other way I could do it," said Sanchez, a 35-year-
old Virginia Beach ...