Senate Bill Would Limit Use of 401(k)s as Rainy Day Funds

Bloomberg Businessweek reports:

Workers will be limited in tapping their 401(k) retirement plans for loans under legislation two senators plan to introduce today that’s designed to counter the erosion of retirement assets.

“During these difficult economic times, we are increasingly seeing 401(k) funds being treated as rainy day funds,” Senator Herb Kohl, a Wisconsin Democrat, said in a statement obtained by Bloomberg News. “A 401(k) savings account should not be used as a piggy bank for revolving loans.”

When you have Senator Kohl's money: it's easy to say such things.