Unemployed tap their 401(k)s

The Obama Administration keeps telling us that the recession has ended... ergo, the recovery has begun. Despite increasing unemployment, consumers are still spending money... albeit their futures' money.

Unemployed tap their 401(k)s

Almost half of all workers who left their job last year took a cash distribution from their plan, according to a new study.

NEW YORK (CNNMoney.com) -- Nearly half of U.S. workers who left their job last year cashed out their 401(k) accounts, according to a study released Wednesday, despite ongoing efforts to dissuade Americans from doing so.

Hewitt Associates, a global human resources consulting firm, said 46% of employees who left their job last year took a cash distribution from their 401(k) plan.

The "alarmingly high" number, which was based on a study of 170,000 401(k) participants, has remained virtually unchanged since 2005, the group said.

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Why worry about the future when there is always a bailout provision on the horizon?