The growing reliance on 401(k) plans as a source of urgent cash is further evidence of consumer financial stress heading into the 2024 election year. Despite high GDP and low unemployment, some Americans are clearly facing a cash crunch and struggling to pay the bills. Bank of America said the number of 401(k) participants taking hardship distributions increased by 27% from the first quarter of this year. Bank of America found 401(k) contribution rates were steady during the third quarter at 6.5%. Just under 3% of those age groups are cutting back on their retirement savings.

---

Persons: Lisa Margeson, America’s Margeson, “, Gen Organizations: New, New York CNN, Bank of America, Bank of, New York Federal, ” Bank, America’s Locations: New York