While the notion of 401(k) playing cards withered around grievance, one to proposal highlighted new twin-purpose character regarding You IX. Results S. outlined share preparations. DC retirement accounts symbolizing a growing fraction people family wide range are increasingly being used by personnel to each other fund old-many years old-age cover, and to let safeguards latest practices means. The master plan loan function is just one of the popular yet understudied pre-advancing years liquidity attributes of 401(k) plans. Which paper enjoys searched the consequences off boss package loan rules, and we also stop a loan design can also be and you will comes with an enthusiastic financially meaningful affect participant credit. Inside our dataset, one-fifth regarding package participants got that loan at any given time, when you’re almost 40 percent performed very more a good five-season several months. Users exactly who lent so much more were and additionally apt to be young and you may liquidity-restricted, consistent with good lifecycle brand of preserving and borrowing from the bank. Yet conditional on credit, it actually was higher earnings/money people exactly who borrowed big portions of the 401(k) account. More than two decades back, Nobel Prize champion Franco Modigliani patented a strategy to own providing 401(k) playing cards for the purpose of creating it easier for professionals to withdraw off their advancing years accounts to fund short-term practices need (Vise, 2004) Employer-computed package mortgage plan together with had a content affect credit behavior. […]