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Defaults due to job loss, death or disability cost consumers billions in lost retirement savings annually. Retirement leakage is a growing problem and an industry wide concern.  Unfortunately, plans do not currently offer loan protection to offset these losses.

THE PROBLEM:  A troubled economy has required struggling workers to borrow from their 401(k) plans in order to meet emergency expenses such as foreclosure prevention, medical expenses, and tuition. Unfortunately, many borrowers are unaware that in the event of unemployment, disability or death, they are required to repay an outstanding loan balance in FULL within 60 days.  If a borrower cannot pay, they are considered in default, and responsible for taxes and penalties.  Compounding the problem, current loan disclosures do not clearly state the consequences of a loan default.  American families unnecessarily lose between billions in retirement savings each year due to involuntary defaults on 401(k) loans.

THE SOLUTION: Fortunately, there is an easy, affordable alternative to default, Retirement Loan Eraser™, from market innovator Custodia Financial. In the event of a job loss, disability or death, Retirement Loan Eraser provides money to a borrower or their beneficiaries to cover all costs associated with a defaulted outstanding loan, including all taxes, penalties and lost interest on the account.

Retirement Loan Eraser gives peace of mind to a family’s long term financial security by fully guarding the balance of a hard earned retirement plan, even in the event of bankruptcy.

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What still needs to be done


401(k) loan protection needs to be readily available to ALL borrowers, without exception.

Talk to your employer about offering protection and join us at!