One of the biggest problems I’ve seen is the tendency of some to see their 401k/IRA as a Christmas/Vacation Club. Every year they would remove all the vested funds to buy Christmas presents or fund their vacation plans.
I used to be the plan administrator where I worked. People were always co ing in wanting to take out some of their 401(k). I had it printed out what situations they could take a distribution or loan, and told them that I would have to have
proof to keep in my files.