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Benefits March 1, 2010
Small Business Owners Report Tapping into 401(k)
March 1, 2010 (PLANSPONSOR.com) – 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, according to the press release. 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.