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Kiplinger
Kiplinger
Business
Adam Shell

The Truth About 401(k)s: 7 Big Benefits and 4 Drawbacks

Tim Steffen IRS Kelly LaVigne Vanguard
Wooden blocks spelling out "401(k)" are surrounded by rolls of $100 and $50 bills.

Is a 401(k) worth it for most Americans? The stats would certainly back that up, as 401(k)s are the second most popular way to save for retirement after IRAs. These employer-sponsored plans enable workers to deduct money from their paychecks regularly to build a retirement nest egg. But for many savers, the full pros and cons of 401(k)s tend to take on a sharper focus as they near retirement.

Is a 401(k) worth it?

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