While making loans or withdrawals from a retirement account is often linked to an emergency like illness, there is fresh evidence that the impact of even briefly sidelining money can be huge by the time retirement arrives. Kohl and Senator Charles Schumer, a New York Democrat, have unveiled a bill that would ban the use of 401(k) debit cards, which they contend make it too easy for investors to remove money from their retirement savings. The senator contends that strapped investors are more likely to make mistakes when they respond to marketing pitches from companies trying to land new business from rolled-over retirement accounts. The report notes that investors who borrow even small amounts from their 401(k) plans and only repay the loan - without contributing more to make up for lost returns - reduce their overall retirement savings by 13 to 22 percent. John Gannon, a senior vice president with the Financial Industry Regulatory Authority, told the Committee on Aging that FINRA is concerned that some financial advisers are encouraging investors to tap into their retirement accounts too early. Whatever might help investors make decisions about their savings, spiraling costs and a slumping housing market are only likely to make removing money from retirement accounts more tempting. read more