Borrowing from the future ? 401(K) plan loans and loans defaults Timothy ( Jun ) Lu ... [et al.]
Contributor(s): Lu, Timothy Jun
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Material type: 
ArticlePublisher: 2017Subject(s): PLANES DE PENSIONES | FONDOS DE PENSIONES | IMPUESTOS
In:
National tax journal v. 70, n. 1, March 2017, p. 77-110Summary: Most employers permit 401 (k) plan participants to borrow from their retirement plan assets. Using an administrative dataset tracking over 800 plans fo r five years, we show that 20 percent o f workers borrow at any given time, and almost 40 percent borrow at some point overfive years. Also, workers borrow more when a plan permitsmultiple loans. Ninety percent o f loans are repaid,but 86 percent o f workers who change jobs with a loan default on the outstanding balance. We estimate that $5 billion per year in defaulted plan loans generate federal revenues of l billion annually, more than previously thought.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| IEF | OP 233/2017/1-3 (Browse shelf) | Available | OP 233/2017/1-3 |
Disponible también en línea a través de la Biblioteca del Instituto de Estudios Fiscales. Resumen. Conclusión. Bibliografía.
Most employers permit 401 (k) plan participants to borrow from their retirement plan assets. Using an administrative dataset tracking over 800 plans fo r five years, we show that 20 percent o f workers borrow at any given time, and almost 40 percent borrow at some point overfive years. Also, workers borrow more when a plan permitsmultiple loans. Ninety percent o f loans are repaid,but 86 percent o f workers who change jobs with a loan default on the outstanding balance. We estimate that $5 billion per year in defaulted plan loans generate federal revenues of l billion annually, more than previously thought.
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