7 Pros and Cons of Investing in a 401(k) Retirement Plan at Work

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A 401(k) is an employer-sponsored retirement account. It allows an employee to dedicate a percentage of their pre-tax salary to a retirement account. These funds are invested in a range of vehicles like stocks, bonds, mutual funds, and cash.

Some of the Pros and Cons of Investing in a 401(k) Retirement Plan at Work as per Laura Adams on Quickanddirtytips are

Pros of investing in a 401(k) retirement plan at work

  1. Having federal legal protection
  2. Getting matching funds
  3. Having a high annual contribution limit
  4. Getting free investing advice

Cons of investing in a 401(k) retirement plan at work

  1. You may have limited investment options
  2. You may have higher account fees
  3. You must pay fees on early withdrawals