Clark often promises to help you avoid getting ripped off. But what happens when you rip yourself off? Clark is very upset about a report he read on TheStreet.com talking about employers offering 401(k) debit cards! Employers don't like the paperwork hassle of employees taking loans against their 401(k), but this type of debit card offers a way around the paperwork. 401(k) debit cards have been around for about 5 years and they're gaining in popularity. Clark wants you to know that they're a horrible idea. People are being told it's such a great deal to borrow from yourself -- because you pay yourself back instead of a bank. But this is a fallacy. Here's why: Money in a 401(k) is pre-tax dollars, while you have to use after-tax dollars to pay yourself back. So you might pay $1.50 in real money to pay back $1 to your 401(k).

But wait, it gets worse. If you lose your job, the money is due back in the plan right away. If you can't pay back the loan, you trigger a huge tax burden and penalty because the borrowed money is treated as a premature distribution from your 401(k). You'll incur around 40 percent tax and penalty. So say you borrowed $10K from your 401(k). You will now owe the IRS around $4K you may not have because of your job loss. There are some desperate situations where borrowing against your 401(k) may work, but Clark says you must exhaust all other possibilities first. The feds should have never approved this 401(k) debit card. Clark believes 401(k) contributions should be mandatory and withdrawals should be banned.