More Americans taking from their 401K’s

(CNN)– 401K’s are becoming a rainy-day fund for more Americans.

That’s according to the Wall StreetJournal, citing Vanguard Group, which administers 401K type accounts for millions of people.

The Journal reports nearly 5% of account holders took early withdrawals from their 401K last year, that’s a record percentage.

The previous record was about three-and-a-half percent in 2023.

Before the pandemic, the average was about 2%.

More than a third of those who took hardship distributions last year did it to avoid eviction or foreclosure.