Senate bill would limit 401k loans

The bipartisan proposal would make borrowing harder but repayment easier.
By MSN Money partner on Fri, May 20, 2011 2:33 PM

This post comes from Emily Brandon at partner site U.S. News & World Report.

U.S. News & World Report on MSN MoneyA new bill aims to make it more difficult for workers to take out 401k loans, but easier to pay them back. U.S. Sens. Herb Kohl, a Wisconsin Democrat, and Mike Enzi, a Wyoming Republican, introduced a bill on May 18 with provisions intended to prevent the leakage of savings from 401ks before retirement.

Reduce early access. The Savings Enhancement by Alleviating Leakage in 401k Savings Act of 2011, or SEAL Act, reduces the number of loans that 401k participants can take to three at a time. Currently employers determine the number of loans available.

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