The CARES Act Makes 401(k) Loans Easier, but Most Americans Have Said "No, Thanks"
The Coronavirus Aid, Relief, and Economic Security Act (or CARES Act for short) relaxed the rules for 401(k) loans made in response to the COVID-19 pandemic. It's now possible to borrow up to $100,000 or 100% of your vested account balance, up from a maximum of $50,000 or 50%.
But despite the rule change, research from Fidelity shows most Americans are taking a pass on the opportunity to borrow. In fact, the percentage of people who initiated a 401(k) loan dropped from 2.6% in the last quarter of 2019 down to 2.3% in the first quarter of 2020.
This was about the same number of retirement savers who took out a loan during the same quarter in 2019, long before the start of the pandemic.
Source Fool.com
