Data & Research March 1, 2010
A Fifth of Small-Business Owners Tap into 401(k)s
The recession has taken a toll on small-business owners' retirement savings and personal health, according to a new survey.
Reported by Rebecca Moore
A press release from management consultant George S. May International said 20% of respondents to its survey reported tapping into their 401(k)s for living expenses. Forty-one percent said they have not taken a salary in order to keep their businesses going.
More than a quarter of respondents (27%) indicated they do not have the financial resources to weather the next quarter. Eighty percent of the respondents give their business a nine-month lifespan if economic conditions do not improve, 16% said three months, and 4% reported six months of survival.
In addition, the survey of 713 small-business owners across the United States found that 52% said they’ve experienced negative health effects—both physically and mentally—due to the recession.
You Might Also Like:
![](https://si-interactive.s3.amazonaws.com/prod/planadviser-com/wp-content/uploads/2023/12/07094831/PA-120723-Pontera-Funding-Round-1206905344-web-432x243.jpg)
401GO Raises $12M Series A Funding Led by Next Frontier Capital
Rally Ventures, Impression Ventures and Stout Street Capital contributed to the round, fueling the small plan provider’s growth strategy to...
![](https://si-interactive.s3.amazonaws.com/prod/planadviser-com/wp-content/uploads/2024/03/25120201/PSPA-032523-Judge-Rules-for-Molina-flexPATH-in-ERISA-Case-811927146-web-432x243.jpg)
Judge Rules for Molina, flexPATH in ERISA Case
The District Court judge cited broad indexes as the appropriate benchmarks for plan TDFs in a ruling expected to be...
![](https://si-interactive.s3.amazonaws.com/prod/planadviser-com/wp-content/uploads/2024/03/01131152/PA-030124-IRA-Rollovers-Boom-1156078938-web-432x243.jpg)
IRA Assets Climb to $13T, With Rollovers Fueling Growth
The ICI’s annual IRA report shows financial professionals continue to be the primary source for rollover advice, staying well ahead...