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USA Today recently reported that hardship withdrawals from 401(k) accounts have risen more than 20 percent, according to some account administrators, as American homeowners scrape together money to avoid mortgage foreclosures.

“Many accept fees charged and taxes owed and simply cash out the accounts to avoid having to repay the amount they use,” the paper reported. “Merrill Lynch (& Co. Inc.) reported a 23 percent rise in hardship withdrawals from a year ago, and Principal Financial (Group Inc.) said it fielded 245 calls in January from account owners who wished to avoid foreclosure, up from 45 calls in January of 2007.”

Tim Minard, Principal’s senior vice president for retirement distribution, touched on this topic when he spoke at the Association of Independent Financial Advisers Midwinter Insurance Conference in Florida.

So far, 401(k) contribution rates are holding up. Minard said, “Maybe that’s the beauty of the payroll deduction business in that once they get into it – if I’m in a financial crush, pulling back the $100 I’m saving in the 401(k) plan probably is not going to pull me out of it. It might not be the first place they look. So deferrals I don’t think are as big a risk in my opinion.”

As for withdrawal rates, he said: “The good news is we don’t see a rush that would cause concern that those numbers went from a modest or low level up to a very high level just because there are some tough times.

“We do see an increase in hardship withdrawals. But that’s coming from a point where I actually think there’s probably too many loans and too many hardship withdrawals to begin with.”

If people continue to put money into their 401(k) accounts, that’s a good sign. To do otherwise would be shortsighted.

But withdrawing money from those accounts should always be a last resort. An increase in the practice is more evidence about the mortgage crisis, and that’s not all. Minard’s comment about too many hardship withdrawals in general is evidence that Americans are ignoring the future to buy whatever looks like fun right now.