4 Reasons 401(k) Plans Still Make Sense

These tax-advantaged accounts remain the backbone of a retirement saving strategy, despite what naysayers might argue.

A collection of colorful piggy banks.
(Image credit: Getty Images)

From time to time, you may see articles on the drawbacks of 401(k) retirement plans. While it is important to understand the limitations of any investment account, when pundits start claiming that 401(k) retirement plans don’t make sense for most people, I feel the need to speak up. When I was a financial adviser, nearly all of my clients — across a wide variety of income levels — built their foundation for retirement with 401(k) plans. I would hate to see people read negative articles and decide not to participate in retirement plans.

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This material is provided for general and educational purposes only, and not intended to provide legal, tax or investment advice. This material does not provide recommendations concerning investments, investment strategies or account types; and not intended to suggest any particular investment action is appropriate for you. Please consider your own circumstances before making an investment decision.


This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Roger A. Young, CFP®
Senior Financial Planner, T. Rowe Price

Roger Young is Vice President and senior financial planner with T. Rowe Price Associates in Owings Mills, Md. Roger draws upon his previous experience as a financial adviser to share practical insights on retirement and personal finance topics of interest to individuals and advisers. He has master's degrees from Carnegie Mellon University and the University of Maryland, as well as a BBA in accounting from Loyola College (Md.).