A new debit card from Reserve Solutions Inc. allows consumers to use ATMs to pull out funds from their 401(k) plans, the Washington Times reports. Financial planners are sharply critical of the ReservePlus card, which already has 10,000 cardholders.

ReservePlus cardholders can withdraw loans from their employer-sponsored 401(k) retirement funds, which normally advise people from taking out money before reaching 59½ years old because of early withdrawal taxes and fees. Pulling out those funds early and failing to replace the money quickly could result in account holders losing their retirement money.

I think this is just another sign of the devastating impact that the economic slow down and the sub prime mortgage mess has had on hard working Americans.

Does this new easy method make it more likely that people will have no retirement when it’s time to retire?

Yes or NO

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