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Congress has decreed that people should have more time to pay back their 401(k) loans if they lose or leave their jobs. That extension isn’t enough to make 401(k) loans safe, though. You’re still risking your retirement security every time you take money out of your plan.
About 40% of 401(k) savers borrow from their plans in a given five-year period, and 90% of the loans are paid back, according to Faculty Affiliate Olivia S. Mitchell.
She is concerned that the longer grace period could lure more people into a false sense of security, leading to more loans - and more defaults. Making loans more attractive “is not the approach you want if your primary goal is retirement security,” Mitchell says.
Faculty Affiliates Mark V. Pauly and Kevin Volpp write about Trump’s detrimental impact on Medicare in their Op-Ed for Marketplace.
“President Trump has proposed some modest steps to slow the apparently inexorable growth in Medicare entitlement spending, breaking with his campaign promise to leave alone government-funded programs for seniors.
Although there is often little correlation between presidential budget proposals and budgets eventually approved by Congress, the administration’s budget, which calls for reducing Medicare spending by about $270 billion over 10 years, may start the conversation about what to do to slow growth in Medicare spending.
While cuts in provider payments in some areas will be significant, the administration has left alone the harder questions of whether we can afford to provide generous Medicare benefits to all seniors and to continue to make coverage decisions largely without considering cost.”
Trump administration expands access to health insurance plans not meeting ObamaCare requirements; Trump supports effort to improve gun background checks; Federal Chairman Powell taps two senior advisers.
Senate votes down both immigration proposals; Department of Energy must implement Obama rules; Consumer sentiment beats economists’ estimates.
Trump says he supports 25 cent gas tax increase to pay for infrastructure; House votes to add ADA lawsuit requirements; Home builder confidence steady.