We’ve all heard that the 401(k) has its advantages as a foundational retirement planning account. However, there are other vehicles available that might prove to be even more desirable when it comes time to retire.
Traditional 401(k)s come with restrictive rules governing when you can withdraw money. In most cases, you’ll need to be at least 55 to avoid penalty (except in the case of unusual hardship, where various amounts may be loaned or withdrawn). Many 401(k) plans also come with high fees and a limited investment menu. And last, many plans require that you work for your employer for a certain number of years before the entire account is actually yours.