Are employer-sponsored 401(k) plans a scam?

Many Americans use an employer-sponsored 401 (k) plan as their most important retirement savings tool. For employees, 401 (k)s are an easy way to save and invest for retirement while getting tax advantages. For unscrupulous managers, however, they present an opportunity for fraud.

Is a Roth 401(k) a scam?

The contributed portion of any withdrawal you make from a Roth 401 (k) is tax-free and penalty-free, though the portion due to investment returns is not. The 401 (k) is not a scam in the literal sense of the word.

Is 401K a 'out of control monster'?

After Decades of Being Lab Rats in the Great 401k Experiment, Most Pre-Retirees Still Don’t Have Enough Saved – Even the ‘father’ of the 401k, Ted Benna, has called it an “out of control monster” that should be blown up.

Are 401(k) plans a fraud hazard?

For employees, 401 (k)s are an easy way to save and invest for retirement while getting tax advantages. For unscrupulous managers, however, they present an opportunity for fraud. Though 401 (k) plans are regulated by federal law, fraud can still occur when companies misuse the funds.