©2019 by Savings Preservation Working Group

Policy Changes Could Reduce the Long-Term Effects of Leakage on Workers’ Retirement Savings

Government Accountability Office (GAO)

"GAO is suggesting that Congress consider changing the requirement for the 6-month contribution suspension following a hardship withdrawal. In addition, GAO recommends that the Secretary of Labor promote greater participant education on the importance of preserving retirement savings, and that the Secretary of the Treasury clarify and enhance loan exhaustion provisions to ensure that participants do not initiate unnecessary leakage through hardship withdrawals."