401(k) borrowing became necessary for one family.

A family in Maine borrowed from a husband's 401(k) and withdrew retirement annuity funds to cover rising energy, food, and fuel costs after savings were repeatedly drained; the 401(k) loan is being repaid through payroll deductions.

Rising household costs have left a family in Maine using retirement funds to meet expenses. Electricity, fuel and grocery prices have outpaced their incomes despite multiple jobs. Savings that once existed have been repeatedly drained by routine bills and unexpected costs. The family borrowed from a husband's 401(k) and withdrew annuity funds to cover needs. Known details: - The family is a household of six in Maine and reports an average electric bill of about $300, while the statewide average cited is $175. - The husband took a loan from his 401(k) to cover holiday and other expenses, and repayments are deducted from his paychecks. - The author withdrew $3,500 from a retirement annuity for a daughter's car, added to the daughter's $1,000, and also withdrew $2,000 to cover overdue expenses. - The author is a teacher with a pension that cannot be borrowed against and would face penalties and tax consequences for early withdrawal. - Despite multiple income sources (teaching, electrical shift work, overtime, freelance writing, summer teaching), the family still struggles to rebuild savings. Summary: Rising costs have pushed this household to use retirement accounts for current living needs, reducing their emergency cushion and creating ongoing repayment obligations. Whether they will need further withdrawals or loans is undetermined at this time.