That’s true and then you pay that loan back into your 401k.

I think it's penalty free for 60 days per calendar year

otherwise, the penalties are steep (10 percent plus income tax on the amount borrowed)

My cousin dealt with something similar a few months ago, avoided penalty after borrowing from IRA/401k


You can actually borrow from them before that, as I understand it.

Undisciplined

You can tap into your IRA and 401k starting at age 59.5


Bell_curve

Medicaid covers nursing homes, but I agree that it's a sad situation.

Good point… so many seniors are destitute though especially in nursing homes 

econ

The Future of Social Security

You're allowed to retire before you withdraw social security. It's not unreasonable to think someone might not be destitute the moment they quit working.