When it comes to retirement accounts, the 401(k) has long been the go-to for millions of Americans. Offered through employers, 401(k) plans allow Americans to save and invest for retirement while lowering their taxable income for the year.

A 401(k) is an important tool -- there's no denying that. And the more people use one to put money away for retirement, the better (in most cases). However, before focusing on maxing out your 401(k) contributions, there are downsides you should be aware of.

One of the biggest downsides to a 401(k) plan is its investment options are usually quite limited. In theory, 401(k) plans are designed to make saving and investing for retirement as simple as possible, which means your plan administrator provides your investment options.

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Source Fool.com