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The Downside to 401(k) Loans (PDF)
TRI-AD 
[Opinion] Apr. 23, 2008
Excerpt: 401(k) conventional wisdom is that loans are just a part of any well-rounded 401(k) plan. Because TRI-AD tends to be a leader rather than blindly following conventional wisdom, we are going to express the opinion that largely unfettered access to 401(k) accounts is counter to the plans' purpose of providing a way for participants to save successfully for retirement.
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