A month ago I blogged about 401(k) debit cards being the worst idea ever. Now I read that some guys down in Washington agree with me.
From the Washington Post.
Debit cards linked to retirement savings accounts would be banned under a bill set to be introduced in the U.S. Senate.
Sen. Charles Schumer, a New York Democrat, and Sen. Herb Kohl, a Democrat from Wisconsin, said on Wednesday that they oppose the 401(k) debit cards, which are being revived by companies seeking to capitalize on tightened access to consumer credit.
“After retreating over the last few years, companies looking to raid Americans’ 401(k) accounts are making a comeback,” Schumer said in a statement.
A companion bill has not yet been introduced in the House of Representatives.
A 401(k) plan is a retirement savings plan that is funded by an employee’s pretax salary contributions and grows tax-free. Consumers have had limited early access to their 401(k) funds through low-interest loans or hardship withdrawals.
Senator Chuck Schumer is my new favorite politician, at least for today 😉