Is a 401(k) a scam?

While the 401 (k) is not a scam, it’s not an option for everyone. Many employers’ 401 (k) plans come with unfavorable terms, and some workers might not have access to one at all. Fortunately, there are plenty of other retirement account options out there, such as: Individual Retirement Accounts for anyone with earned income.

Is 401(k) fraud caused by employers?

He withheld employees’ 401 (k) contributions from their paychecks but never remitted those contributions to the plan. “Fraud caused by employers does happen, but fraud is far more likely to occur by an outside source,” says Gigi Verrey, ChFC, CLU, and vice president of wealth management at GCG Financial.

Are cyber criminals stealing money from 401(k) accounts?

“Cyber criminals are stealing funds from retirement accounts by gaining unauthorized online access. These criminals target 401 (k) accounts because the payoff is bigger than a typical checking account.” Protecting yourself against all forms of hacking isn’t possible, but you can take steps to make your account more secure.

Are 401(k) management fees the last rip-off in retirement savings?

Expensive mutual funds are finally ceding ground to index funds and ETFs, leaving 401 (k) "management" fees as the last great rip-off in retirement saving. Their days are numbered, thankfully.