3 Drawbacks of Using Only a 401(k) for Retirement
A 401(k) is a great retirement savings account for most people. It's very easy to use since your employer manages it. It comes with big tax breaks. And your employer might even give you free money to put into it if the company you work for matches 401(k) contributions.
If you get an employer match, you should always aim to contribute enough to max it out before using any retirement accounts. After all, passing up on free money usually isn't the best financial move.
But once you've earned that employer match, there are some very good reasons to venture out into other retirement plans. And there are three big drawbacks to using a 401(k) alone.
Source Fool.com
