Retirement Savings To Fund Emergencies

Have you noticed a lot of loan activity among your employees suggesting they are using their retirement savings to fund emergencies? Lots of Americans are finding it difficult to fund even small emergencies from their bank accounts, as demonstrated by the proliferation of payday loans, early withdrawals and loans from 401(k) plans.

One way to help may be the sidecar IRA, an account to which employees can direct after-tax money through payroll deduction. Once the account is funded to the extent desired by the employee, the payroll deductions can then be directed toward pretax retirement savings.

Check out related statistics and more information from studies by Transamerica Center for Retirement Studies, Prudential, and AARP by reading the MarketWatch article here: Market-Watch-Sidecars