Retirement Accounts Being Depleted In Attempts To Save Homes from Foreclosure

ConsumerAffairs.com reports:

• Struggling to save their homes from foreclosure, more Americans are raiding their 401(k) retirement accounts to pay their bills -- and getting slammed with taxes and penalties in the process. Rather than borrow money from their 401(k) accounts, which would have to be paid back, a growing number of beleaguered families have been cashing out, according to retirement plan administrators. [...] Merrill Lynch found that [at plans that it administers] the primary reason for the rise in hardship withdrawals was to prevent foreclosure or eviction.

For more, see Homeowners Raiding Retirement Accounts to Avoid Foreclosure (Fees and penalties for early withdrawals can be severe).