1 Reason Not to Invest in a 401(k)
The 401(k) is an incredibly powerful investing tool, and there are plenty of advantages of contributing to this type of account.
For one, 401(k)s have much higher annual contribution limits than IRAs ($19,500 per year compared to just $6,000 per year), and many 401(k) plans also offer employer matching contributions. It's also easy to get started investing in a 401(k), especially considering some employers automatically enroll new workers.
However, there's one major drawback to investing in a 401(k), and it could potentially cost you tens of thousands of dollars or more over a lifetime.
Source Fool.com
