A research paper from the Wharton Pension Research Council states that 401(k) contributions are “remarkably stable” after loans and hardship withdrawals. Quite honestly, I always saw loans as a non-issue since it would be a participant-directed investment and the issue with hardship distributions is that they’re leakage.
It seems that thanks to auto enrollment and auto escalation Being so prevalent, loans and hardship distributions don’t negatively impact savings behavior.
