Why you might hate your 401(k)

May 5, 2021

401(k)s are great, right? High contribution limits, no need to manually transfer funds, and then there's that sweet employer match. That stuff is all true, but like any retirement account, there are drawbacks to housing your nest egg in a 401(k), some of which you might not realize until retirement. Let's take a look at three and what you can do to minimize the pain.

1. High fees take a chunk out of your savings every year

You pay 401(k) fees every year, and that doesn't stop in retirement. These accounts have reporting requirements, plus someone has to host the website where you can view your balance and alter your investments. Someone also has to facilitate rollovers if you leave your job. All that stuff costs money, and your plan administrator takes what it needs out of your account every year.