More than 25% dip into their DC plans for non-retirement spending

More than half of American employers offer employees access to a 401(k)s or other defined contribution plan, collectively spending more than $118 billion in match contributions a year. However, data from the Federal Reserve and the IRS analyzed by HelloWallet indicate that many plan participants are unable or unwilling to use their DC plans strictly for retirement savings — more than a quarter of households have withdrawn funds from their DC accounts for non-retirement spending, totally more than $70 billion in annual withdrawals.

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