It is common for employees to save for retirement by paying into a 401(k) plan. These plans often have many flaws that can impede retirement savers. People who want to improve their retirement savings will need a well-designed retirement plan. This article provides the reader with a list of some of the most common imperfections that are found in modern 401(k) retirement plans. There are some plans that might have poor rates of automatic enrollment and they might also have poor rates of automatic escalation of contribution levels. Plans should also use auto-escalation as an automatic feature, and employers should make this happen automatically. There are many other common imperfections that are mentioned in this article, and people who have a 401(k) plan should carefully research what their plan provides.
See Mark P. Cussen, 401(k) Flaws You Should Know About, Investopedia, April 20, 2016.
